Balbir Singh Makkar, New Delhi V. ACIT, New Delhi

ITA 996/DEL/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9884 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 10 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 21-02-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SANJAY GOPAL
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI A BEN CH, NEW DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER, AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ITA NO. 996/DEL/2017 [ASSESSMENT YEAR: 2012-13] BALBIR SINGH MAKKAR VS. THE A.C.I.T E 413, GREATER KAILASH CIRCLE 61(1) PART II, NEW DELHI NEW DELHI PAN: ABGPS 1042 M [APPELLANT] [RESPONDENT] DATE OF HEARING : 06.01.2020 DATE OF PRONOUNCEMENT : 06.01.2020 ASSESSEE BY : SHRI VINEET GARG, ADV REVENUE BY : SHRI SANJAY GOPAL, CIT-DR ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER, THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME TAX [APPEALS] - 20 NEW DELHI DATED 19.12.2016 PERTAINING TO ASSESSMENT YEAR 2012-13. 2 2. THE SOLITARY GRIEVANCE OF THE ASSESSEE IS THAT T HE CIT(A) ERRED IN LAW AND ON FACTS IN SUSTAINING THE IMPUGNE D ADDITION OF RS. 1,43,261/- ON ACCOUNT OF DISALLOWANCE AS PER SECTION 14A OF THE INCOME TAX ACT, 1961 [HEREINAFTER REFERR ED TO AS 'THE ACT' FOR SHORT] R.W.R 8 D OF THE I.T. RULES, 1 962. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE EARNED DIVIDEND INCOME OF RS. 20,735/- AND CLAIMED THE SAME TO BE EXEMPT. INVOKING THE PROVISIONS OF SECTION 14A OF THE ACT R.W.R 8D OF THE RULES, THE ASSESSING OFFICER COMPUTED THE DISALLOWANCE AT RS. 1,43,261/-. 4. THE ASSESSEE CARRIED THE MATTER BEFORE THE LD. C IT(A) BUT WITHOUT ANY SUCCESS. 5. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE VEHE MENTLY STATED THAT ON THE FACTS OF THE CASE, SECTION 14A OF THE A CT R.W.R 8D OF THE RULES IS NOT APPLICABLE. 6. PER CONTRA, THE LD. DR STRONGLY SUPPORTED THE FI NDINGS OF THE ASSESSING OFFICER. 3 7. WE HAVE CAREFULLY CONSIDERED THE ORDERS OF THE A UTHORITIES BELOW. THERE IS NO DISPUTE THAT THE DIVIDEND INCOME EARNED BY THE ASSESSEE IS AT RS. 20,735/-. IN OUR CONSIDERED OPINION, THE UPP ER LIMIT FOR DISALLOWANCE SHOULD NOT EXCEED THE EXEMPT INCOME OF THE YEAR AS HELD BY THE HON'BLE HIGH COURT OF DELHI IN THE CASE OF P CIT VS. MCDONALDS INDIA PVT LTD ITA NO. 725 OF 2018 DECIDED ON 22.10. 2018. RESPECTFULLY FOLLOWING THE DECISION OF THE HON'BLE HIGH COURT [S UPRA], WE DIRECT THE ASSESSING OFFICER TO RESTRICT THE DISALLOWANCE TO R S. 20,735/- 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSE E IN ITA NO. 996/DEL/2017 IS PARTLY ALLOWED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 06.01 .2020. SD/- SD/- (BHAVNESH SAINI) (N. K. BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 06 TH JANUARY, 2020. VL/ 4 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT ASST. REGISTRAR 4. CIT(A) ITAT, NEW DELHI 5. DR DATE OF DICTATION DATE 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 MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P S/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 THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER