CZAR INFRASTRUCTURE PVT. LTD., NEW DELHI V. ACIT, CENTRAL CIRCLE- 17, NEW DELHI

ITA 850/DEL/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 0958 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 02-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L ANURAGI
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC , NEW DELHI BEFORE S H. N. K. BILLAIYA , ACCOUNTANT MEMBER ITA NO. 850 /DEL/201 8 ASSESSMENT YEAR: 20 14 - 15 M/S. CZAR INFRASTRUCTURE PVT. LTD. 56, COMMUNITY CENTRE, EAST OF KAILASH, NEW DELHI PAN AACCC7908G VS ASSISTANT COMMISSIONER OF INCOME TAX, CENTRE CIRCLE - 17, NEW DELHI (APPELLANT) (RESPONDENT) APPELLANT BY SH. BALDEV RAJ, CA RESPONDENT BY SH. S.L. ANURAGI, SR. DR DATE OF HEARING: 26 /11 /2 0 18 DATE OF PRONOUNCEM ENT: 2 7 / 1 1 /2018 ORDER PER N. K. BILLAIYA, AM: T HIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST THE ORDER OF THE CIT(A) - 27 , NEW DELHI DATED 0 4 .1 2 .2017 PERTAINING TO A. Y. 20 14 - 15 . 2 2. THE ONLY GRIEVANCE OF THE ASSESSEE IS THAT THE CIT(A) ERRED I N CONFIRMING THE DISALLOWANCE OF RS. 374021 / - MADE BY THE ASSESSING OFFICER U/S 14A OF THE INCOME TAX ACT. 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT DURING THE COURSE OF THE SCRUTINY OF A SSESSMENT PROCEEDINGS , T HE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAS EARNED CERTAIN INCOME WHICH IT HAS CLAIMED TO BE EXEMPT FROM TAX. THE ASSESSING OFFICER FURTHER FOUND THAT THE ASSESSEE MADE INVESTMENTS IN SHARES AND THEREFORE DISALLOWANCE U/S 14A OF THE ACT HAS TO BE MADE. THE ASSESSING OFFICER FOUND THA T THE ASSESSEE HAS CALCULATED THE DISALLOWANCE MADE U/S 14A AT RS.166809/ - . 4. APPLYING RULE 8D THE ASSESSING OFFICER COMPUTED THE DISALLOWANCE AT RS.540830/ - AND AFTER DEDUCTING OF RS.166809/ - DISALLOWANCE OF RS.374021/ - WAS MADE. THE ASSESSEE CARRIED T HE MATTER BEFORE THE CIT(A) BUT WITHOUT ANY SUCCESS. 5. BEFORE ME THE COUNSEL FOR THE ASSESSEE VEHEMENTLY STATED THAT THE SUO - MOTO DISALLOWANCE OF RS.1,66,809/ - SHOULD BE SUFFICIENT FOR ANY DISALLOWANCE U/S 14A OF THE ACT. PER CONTRA THE DR SUPPORTED TH E FINDINGS OF THE ASSESSING OFFICER. 6 . I HAVE CAREFULLY CONSIDERED T HE ORDERS OF THE AUTHORITIES BELOW. THERE IS NO DISPUTE THAT THE ASSESSEE H A S SUO - MOTO DISALLOWED OF RS.166809/ - . I FIND THAT THE ASSESSING OFFICER HAS 3 NOT RECORDED ANY DISSATISFACTI ON IN SO FAR AS THE AC COUNTS OF THE ASSESSEE ARE CONCERNED. I FIND THAT THE ASSESSING OFFICER HAS MECHANICALLY APPLIED RULE 8D WITHOUT RECORDING ANY DISSATISFACTION. IN MY CONSIDERED OPINION WITHOUT RECORDING ANY DISSATISFACTION THE ASSESSING OFFICER SHO ULD NOT HAVE PROCEEDED BY APPLYING SECTION 14A R/W RULE 8D. I AM OF THE OPINION THAT THE SUO - MOTO DISALLOWANCE OF RS.1,66,809/ - SHOULD MEET THE ENDS OF JUSTICE. I ACCORDINGLY DIRECT THE ASSESSING OFFICER TO DELETE THE DISALLOWANCE OF RS.3,74,021/ - . 7 . I N THE RESULT, THE APPEAL IS FILED BY THE ASSESSEE IS ALLOWED. ORDER P RONOUNCED IN THE OPEN COURT ON 27 . 1 1 . 2 018. SD/ - ( N. K. BILLAIYA ) A CCOUNTANT MEMBER * NEHA* DATE: - 27 . 1 1 .2018 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(APPEALS) 5 . DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 4 DATE OF DICTATION 2 5 .11.2018 DAT E ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMB ER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/ PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH FILE GOES TO THE HEAD CLERK. THE DATE ON WHICH FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER 5