M/s Royal Builders & Developers Private Limited, Ludhiana V. ITO, Ludhiana

ITA 925/CHANDI/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 6500 (ITAT-CHANDIGARH)
• Duration Of Justice: 6 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 02-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES, SMC, CHANDIGARH BEFORE MS. DIVA SINGH, JUDICIAL MEMBER ITA NO. 925/CHD/2017 ASSESSMENT YEA R : 2012-13 M/S ROYAL BUILDERS & VS. THE ITO, DEVELOPERS PVT. LTD., WARD 7(3), THE MALL, LUDHIANA. LUDHIANA. PAN NO. AADCR4953E (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI GURJEET SINGH RESPONDENT BY : SMT.CHANDER KANTA, SR.DR DATE OF HEARING : 14.11.2017 DATE OF PRONOUNCEMENT : 13.12. 2017 ORDER THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE ASS AILING THE CORRECTNESS OF THE ORDER DATED 25.04.2017 OF LD. CIT (APP EALS)-4 LUDHIANA PERTAINING TO 2012-13 ASSESSMENT YEAR. IN THE PRESENT APPEAL, TWO GROUNDS HAVE BEEN RAISED BY THE ASSESSEE ON THE SAME ISSUE, HO WEVER, AT THE TIME OF HEARING, THE ARGUMENTS WERE ADVANCED ONLY IN RESPECT O F GROUND NO. 2 WHICH READS AS UNDER : 2. BECAUSE THE ACTION IS BEING CHALLENGED ON THE FA CTS & LAW FOR MAKING A DISALLOWANCE OF RS. 5,42,296/- U/S 14A R.W RULE 8D WHEREIN NONE DI VIDEND/ HAS ACCRUED/RECEIVED BY THE ASSESSEE DURING THE F.Y. 2011-12. 2. THE LD. AR INVITING ATTENTION TO THE ASSESSMENT ORDER SUBMITTED THAT IN THE FACTS OF THE PRESENT CASE, NO DIVIDEND INCOME HAD BEEN EA RNED BY THE ASSESSEE IN THE YEAR UNDER CONSIDERATION. IT W AS SUBMITTED, THAT THE ARGUMENTS IN RESPECT OF THIS FACT HAVE BEEN RECORDE D IN PARA 3.1 OF THE ASSESSMENT ORDER. INVITING ATTENTION TO PARA 3.7 OF THE ASSESSMENT ORDER, IT WAS SUBMITTED THAT THE AO WAS OF THE VIEW THAT IT IS NOT MATERIAL WHETHER DIVIDEND INCOME IS EARNED OR NOT. THE SAID ORDER , IT WAS SUBMITTED, HAS BEEN UPHELD RELYING UPON THE CIRCULAR NO. 5 /2014 (F.NO.225/182/2013-ITA.II) DATED 11.02.2014. RELIANCE WAS PLA CED UPON THE DECISION OF THE HON'BLE PUNJAB & HARYANA HIGH C OURT IN THE CASE OF CIT VS LAKHANI MARKETING IN ITA 970/2000 (O&M) 02 .04.2014 AND ORDER OF THE ITAT DATED 31.10.2017 IN ITA 1425/2016 IN THE CASE OF ITA 925/CHD/2017 A.Y 2012-13 PAGE 2 OF 2 MEHAR CHAND BHATIA V ACIT, LUDHIANA, IT WAS SUBMITTED THA T NO DISALLOWANCE U/S 14A ON THE FACTS WAS MAINTAINABLE. INVITIN G ATTENTION TO THE SAID DECISION, IT WAS SUBMITTED THAT THE JUDICIAL PRE CEDENT AS LAID DOWN BY THE HON'BLE DELHI HIGH COURT IN THE CASE OF HOLCIM INDIA P.LTD. 90 CCH 81 (DEL) AND CHEMINVEST LTD. V CIT 378 ITR 33 WERE RELIED UPON. 3. LD. SR.DR RELIES UPON THE IMPUGNED ORDER. NO CONTRARY DECISION EITHER ON FACTS OR LAW WAS CITED IN ORDER TO CANVASS A CONTRARY VIE W. 4. I HAVE HEARD THE SUBMISSIONS AND PERUSED THE MATERIA L AVAILABLE ON RECORD. IN THE LIGHT OF THE SUBMISSIONS OF THE PARTIES B EFORE THE BENCH WHEREIN ON FACTS, THERE IS NO DISPUTE IN AS MUCH AS IN TH E FACTS OF THE PRESENT CASE, NO DIVIDEND INCOME HAS BEEN EARNED BY TH E ASSESSEE IN THE YEAR UNDER CONSIDERATION. CONSIDERING JUDICIAL PRECEDENT R ELIED UPON AS CONSIDERED BY THE HON'BLE DELHI HIGH COURT AND HON'BLE P UNJAB & HARYANA HIGH COURT IN THE CASES OF HOLCIM INDIA P.LTD. 90 CCH 81 (DEL); CHEMINVEST LTD. V CIT 378 ITR 33 (DEL) AND CIT VS LAKH ANI MARKETING INC. (P&H), I FIND THAT ISSUE IS NO LONGER RES-INTEGRA. RELY ING UPON THE PRECEDENT AVAILABLE ON THE FACTS AS THEY STAND, THE APPE AL OF THE ASSESSEE IS ALLOWED AND THE ADDITION IS DIRECTED TO BE DELETED. SAID ORDER WAS PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ITSE LF IN THE PRESENCE OF THE PARTIES. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 13.12. 2017. SD/- (DIVA SINGH) JUDICIAL MEMBER POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR ASSTT. REGISTRAR ITAT/CHANDIGARH