Sh. Anil Jain, New Delhi V. ACIT, New Delhi

ITA 824/DEL/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4639 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 13-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY GOEL
• Keywords: Earning of tax free income; Rule 8D
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A, NEW DELHI BEFORE SH. AMIT SHUKLA, JUDICIAL MEMBER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER ITA NO. 824/DEL/2017 : ASSTT. YEAR : 2012-13 SH. ANIL JAIN, 41, UB JAWAHAR NAGAR, NEW DELHI-110007 VS ACIT, CIRCLE-35(1), NEW DELHI (APPELLANT) (RESPONDENT) PAN NO. AAFPJ3129A ASSESSEE BY : SH. VED JAIN, ADV. REVENUE BY : SH. SANJAY GOEL, CIT DR DATE OF HEARING: 10.02.2020 DATE OF PRONOUNCEMENT: 17.02.2020 ORDER PER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER: THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A)-12, NEW DELHI DATED 13. 01.2017. 2. FOLLOWING GROUNDS HAVE BEEN RAISED BY THE ASSESS EE: 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) [CIT(A)] IS BAD BOTH IN THE EYE OF LA W AND ON FACTS. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) HAS ERRED BOTH ON FACTS AND IN LAW I N CONFIRMING THE DISALLOWANCE OF AN AMOUNT OF RS. 10,20,370/- MADE BY THE AO INVOKING THE PROVISIONS OF SECTION 14A READ WITH RULE 8D. 3(I) ON THE FACTS AND CIRCUMSTANCES OF THE CASE, TH E LEARNED CIT(A) HAS ERRED BOTH ON FACTS AND IN LAW I N CONFIRMING THE ACTION OF THE AO IN MAKING DISALLOWANCE REJECTING THE CONTENTION OF THE ASSESS EE ITA NO. 824/DEL/2017 ANIL JAIN 2 THAT NO EXPENDITURE HAS BEEN INCURRED FOR EARNING EXEMPT INCOME, NO DISALLOWANCE U/S 14A IS CALLED FO R. (II) THAT THE ASSESSEE HAVING SUFFICIENT OWNED FUND S, INVESTMENTS HAVING NOT BEEN MADE OUT OF BORROWED FUNDS, NO DISALLOWANCE ON ACCOUNT OF INTEREST CAN B E MADE. (III) WITHOUT PREJUDICE TO THE ABOVE AND IN THE ALTERNATIVE, THE DISALLOWANCE UNDER SECTION 14A CAN BE MADE ONLY TO THE EXTENT OF TAX FREE INCOME EARNE D BY THE ASSESSEE. 3. THE RELEVANT FACTORS WHICH ARE UNDISPUTED BY BOT H THE PARTIES AS REQUIRED FOR ADJUDICATION OF THE CASE AR E AS UNDER: A. DIVIDEND RECEIVED BY THE ASSESSEE - RS.4,42,852/- . B. AMOUNT DISALLOWED BY THE REVENUE - RS.10,20,370/- . C. EXPENDITURE CLAIMED BY THE ASSESSEE - NIL D. OWN FUNDS OF THE ASSESSEE - RS.15.55 CRORES E. FUNDS INVESTED - RS.12.93 CRORES F. WHETHER ANY SATISFACTION AS PER PROVISIONS OF SECTION 14A(2) RECORDED BY THE AO - NO 4. SINCE NO EXPENDITURE HAS BEEN INCURRED OR CLAIME D BY THE ASSESSEE IN RELATION TO THE INCOME NOT INCLUDED IN TOTAL INCOME, SINCE THE ASSESSEE HAS SUFFICIENT OWN FUNDS WHICH WERE UTILIZED FOR INVESTMENTS & PAID NO INTEREST ON THE FUNDS INV ESTED AND SINCE THE ASSESSING OFFICER HAS NOT EXPRESSED ANY DISSATISFACTION ABOUT THE NATURE OF EXPENDITURE CLA IMED (IN THE INSTANT CASE NIL), KEEPING IN VIEW THE PROVISIONS O F SECTION 14A, JUDGMENTS OF HONBLE SUPREME COURT IN THE CASE OF C IT VS RELIANCE INDUSTRIES LTD. (CA NO. 10 OF 2019), CHEMI NVEST LTD. VS CIT (SC), H.T. MEDIA VS PCIT ITA 548/2015 (DEL. HC), THE ITA NO. 824/DEL/2017 ANIL JAIN 3 ADDITION MADE BY THE ASSESSING OFFICER IS HEREBY DI RECTED TO BE DELETED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 17/02/2020. SD/- SD/- (AMIT SHUKLA) (DR. B. R. R. KUMAR) JUDICIAL MEMBER ACCOUNT ANT MEMBER DATED: 17/02/2020 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR