ACIT Circle-27(2), New Delhi V. Xchanging Technology Services India Pvt. Ltd., New Delhi

ITA 9182/DEL/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 2427 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 10 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2016-2017
• Appeal Filed On: 26-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Rule 8D
• Section: 14A

Judgement Text

I.T.A. No. 9182/Del/2019 1 IN THE INCOME TAX APPELLATE TRIBUNAL [ DELHI BENCH “H” NEW DELHI ] BEFORE SHRI G. S. PANNU, PRESIDENT A N D SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER आ.अ.सं./I.T.A No. 9182/Del/2019 िनधाᭅरणवषᭅ/Assessment Year: 2016-17 ACIT, Circle : 27 (2) New Delhi. बनाम Vs. M/s. Xchanging Technology Services India Pvt. Ltd. Rectangle-1, D-4, District Centre, Saket, New Delhi – 110 019. PAN : AABCR5609L अपीलाथᱮ / Appellant ᮧ᭜यथᱮ / Respondent िनधाᭅᳯरतीकᳱओरसे / Assessee by : Shri A. T. Panda, Advocate; राज᭭वकᳱओरसे / Department by : Shri M. Baranwal, [CIT] - D. R.; सुनवाईकᳱतारीख/ Date of hearing : 27/09/2022 उ᳃ोषणाकᳱतारीख/Pronouncement on : 27/09/2022 आदेश / O R D E R PER C. N. PRASAD, J. M. : 1. This appeal filed by the Revenue is against the order of the ld. Commissioner of Income Tax (Appeals)-9 [hereinafter referred to as CIT (Appeals)] New Delhi, dated 30.09.2019 for the assessment year 2016-17. I.T.A. No. 9182/Del/2019 2 2. The Revenue In its appeal has raised the following ground of appeal:- “ On the facts and circumstances of the case, the CIT (A) has erred in deleting the addition made to the tune of Rs.1,73,85,125/- on account of disallowance under section 14A r.w.r. 8D of the Income Tax Rule, 1962.” 3. At the outset, the ld. Counsel for the assessee submits that during the assessment year the assessee did not receive any exempt income and the ld. CIT (Appeals) deleted the disallowance following the decision of the Hon’ble Delhi High Court in the case of Cheminvest Limited Vs. CIT (378 ITR 33). The ld. Counsel further submits that in a recent decision, the jurisdictional High Court in the case of PCIT Vs. Era Infrastructure (India) Ltd. [141 taxmann.com 289] held that the Amendment brought in by the Finance Act, 2022 to the provisions of section 14A of the Act clarifying even if there is no exempt income the provisions of section 14A read with Rule 8D have application was held to be applicable only prospectively. Ld. Counsel submits that this decision was followed in the case of PCIT Vs. Telecommunications Consultants India Ltd. In ITA. No. 293/2022 dated 31.08.2022. 4. The ld. DR supported the order of the Assessing Officer. 5. Heard rival submissions perused the orders of the authorities below. We observe that the ld. CIT (Appeals) deleted the disallowance made under section 14A of the Act for the reason that the assessee did not receive any exempt income during the assessment year under consideration. The ld. CIT (Appeals) followed the decision of the Hon’ble Delhi High Court in the case of Cheminvest Limited Vs. CIT (supra). We further observe that recently the Hon’ble Delhi High Court in the case of I.T.A. No. 9182/Del/2019 3 PCIT Vs. Era Infrastructure (India) Ltd. (supra) following the decision of Apex court in the case of Sedco Forex International Drill. Inc Vs. CIT (2005) 12 SCC 717 and the decision of the Hon’ble Supreme Court in the case of M.M. Aqua Technologies Ltd. Vs. CIT in Civil Appeal Nos. 4742 and 4743 of 2021 (dated 11.08.2021) held that the Amendment to section 14A of the Act which is for removal of doubts cannot be presumed to be retrospective. Similar view has been taken by the Hon’ble Delhi High Court in the recent decision in PCIT Vs. Telecommunications Consultants India Ltd. (supra). Thus, we do not see any infirmity in the order passed by the ld. CIT (Appeals) in deleting the disallowance made under section 14A read with Rule 8D of the Act. Ground raised by the Revenue is rejected. 6. In the result, appeal of the Revenue is dismissed. Order pronounced in the open court on : 27/09/2022. Sd/- Sd/- ( G. S. PANNU ) ( C. N. PRASAD ) PRESIDENT JUDICIAL MEMBER Dated : 27/09/2022. *MEHTA* Copy forwarded to : 1. Appellant; 2. Respondent; 3. CIT 4. CIT (Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, New Delhi. I.T.A. No. 9182/Del/2019 4 Date of dictation 27.09.2022 Date on which the typed draft is placed before the dictating member 27.09.2022 Date on which the typed draft is placed before the other member 27.09.2022 Date on which the approved draft comes to the Sr. PS/ PS 27.09.2022 Date on which the fair order is placed before the dictating member for pronouncement 27.09.2022 Date on which the fair order comes back to the Sr. PS/ PS 27.09.2022 Date on which the final order is uploaded on the website of ITAT 27.09.2022 Date on which the file goes to the Bench Clerk 27.09.2022 Date on which the file goes to the Head Clerk The date on which the file goes to the Assistant Registrar for signature on the order Date of dispatch of the order