ADDL. CIT., SPECIAL RANGE- 9, NEW DELHI vs. TOURISM FINANCE CORPORATION OF INDIA LTD., NEW DELHI
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Income Tax Appellate Tribunal, DELHI BENCH: ‘G’ NEW DELHI
Before: SHRI SAKTIJIT DEY & DR. BRR KUMAR
IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘G’ NEW DELHI
BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER & DR. BRR KUMAR, ACCOUNTANT MEMBER
ITA No.6837/Del/2017 Assessment Year: 2012-13
Addl. CIT, Special Range-9, Vs. Tourism Finance Corporation New Delhi. of India Ltd., 13th Floor, IFCI Tower, 61-Nehru Place, New Delhi-1100 19
PAN :AAACT0706D (Appellant) (Respondent)
Revenue by Shri Umesh Takyar, Sr. DR Respondent by Shri Sanjay Aggarwal, CA
Date of hearing 28.02.2022 Date of pronouncement 28.02.2022 ORDER PER SAKTIJIT DEY : JUDICIAL MEMBER This is an appeal by the Revenue against the order dated
22.12.2016 of learned Commissioner of Income-Tax(Appeals)-39,
New Delhi for the assessment year 2012-13.
The only effective ground raised by the Revenue is as under:
“1. The on the facts and circumstances of the case, the Ld.CIT(A) has erred in not appreciating the fact that A.O made the disallowance with sec. 14A r.w.r. 8D of the IT Act.”
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Briefly, the facts are that the assessee is a resident company
stated to be engaged in long term financing and financial advisory
services. For the assessment year under dispute, the assessee
filed its return of income on 27.9.2012 declaring total income of
Rs.37,96,56,070. In course of assessment proceedings, the
Assessing Officer noticed that in the year under consideration,
the assessee had earned exempt income by way of dividend
amounting to Rs.69,85,231. Noticing this, the Assessing Officer
called upon the assessee to explain why disallowance should not
be made in terms of Rule 8D. Though, the assessee objected to
the proposed disallowance, however, the Assessing Officer
rejecting the submissions of the assessee proceeded to compute
disallowance under Section 14A read with Rule 8D at
Rs.2,17,65,423. The assessee contested the aforesaid
disallowance before learned Commissioner(Appeals).
Being convinced with the submissions of the assessee,
learned Commissioner(Appeals) restricted the total disallowance
to be made under Section 14A to Rs.4,82,053.
We have heard Shri Sanjay Aggarwal, learned counsel for
the assessee and Shri Umesh Takyar, learned Senior
Departmental Representative. As could be seen from the facts on
3 ITA No.6837/Del/2017
record, as against dividend income earned of Rs.69,85,231, the
assessee initially had disallowed an amount of Rs. 1 lac suo-motu
under Section 14A of the Act. Subsequently, in course of
assessment proceedings, the assessee filed a revised computation
making disallowance of Rs.4,82,053 under Section 14A of the Act.
The Assessing Officer, however, by completely dismissing the
claim of the assessee proceeded to disallow expenses by applying
Rule 8D. As rightly observed by the learned
Commissioner(Appeals), the Assessing Officer has not recorded a
proper satisfaction in terms of Section 14A(2) of the Act as to why
the disallowance made by the assessee is incorrect having regard
to its books of accounts. On the contrary, the assessee has fully
justified the suo-motu disallowance made by it through detailed
submissions furnished, both, before the Assessing Officer as well
as learned Commissioner(Appeals). Moreover, considering the
quantum of exempt income earned by the assessee, the
disallowance made by the Assessing Officer is unreasonably
excessive and has no nexus with the actual expenditure incurred
by the assessee for earning the dividend income.
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In view of the aforesaid, we do not find any infirmity in the
order of learned Commissioner (Appeals). Accordingly, we uphold
the same by dismissing the ground raised.
In the result, the appeal is dismissed.
Order pronounced in the open court on 28.02.2022.
Sd/- Sd/- (DR. BRR KUMAR) (SAKTIJIT DEY) ACCOUNTANT MEMBER JUDICIAL MEMBER
Dated: 28th February, 2022. Mohan Lal Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi
5 ITA No.6837/Del/2017
Sl. No. Particulars Date 1. Date of dictation: 28.02.2022 2. Date on which the draft of order is placed before the 28.02.2022 Dictating Member: 3. Date on which the draft of order is placed before the other Member: 4. Date on which the approved draft of order comes to the Sr. PS/PS: 5. Date of which the fair order is placed before the 28.02.2022 Dictating Member for pronouncement: 6. Date on which the final order received after having been singed/pronounced by the Members: 7. Date on which the final order is uploaded on the website of ITAT: 8. Date on which the file goes to the Bench Clerk 9. Date on which files goes to the Head Clerk: 10. Date on which file goes to the Assistant Registrar for signature on the order: 11. Date of dispatch of order:
