DCIT, FARIDABAD vs. M/S. RICHA HOLDINGS LTD., FARIDABAD

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ITA 3105/DEL/2015Status: DisposedITAT Delhi01 June 2017AY 2011-123 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s order deleting the additions, following its own decision in the assessee's own case for an earlier assessment year. The Revenue's appeal and the assessee's cross-objection were dismissed.

What were the facts?

The Revenue appealed against the deletion of additions made by the Assessing Officer on account of disallowance of interest on borrowed funds and disallowance under Section 14A. The assessee filed a cross-objection.

What were the issues?

Whether the deletion of additions for disallowance of interest on borrowed funds and under Section 14A by the CIT(A) was justified, considering the Tribunal's prior ruling in the assessee's own case.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH : SMC : NEW DELHI

Before: SHRI R.S. SYAL, VICE-

For Appellant: Shri Vijay Singla, CA, Ms Bedobani, DR
Hearing: 01.06.2017Pronounced: 01.06.2017

Heard together (2 matters)

CO No.225/Del/2015
ITA No.3105/Del/2015

Read from the judgment's own cause title. This page is filed under one of them.

This appeal by the Revenue and the Cross Objection by the assessee arise out of the order passed by the CIT(A) on 02.03.2015 in relation to the assessment year 2011-12.

2.

The first ground of the Revenue’s appeal is against the deletion of addition of Rs.3,07,573/- made by the Assessing Officer on account of disallowance of interest on borrowed funds. The second ground is against the deletion of addition of Rs.36,65,923/- u/s 14A of the Act.

3.

I have heard the rival submissions and perused the relevant material on record. It is clear from the orders of the authorities below as has been admitted by the ld. DR that the decision on both the grounds for this year is based on the view taken in an earlier year. The ld. AR placed on record a copy of the order passed by the Tribunal on 25.05.2017 in in assessee’s own case for the assessment year 2009-10 in which the action of the CIT(A) in deleting the similar additions has been upheld. The ld. DR could not point out any distinguishing fact of the instant year vis-à-vis the assessment year 2009-10 considered and decided

CO No.225/Del/2015 by the Tribunal. Respectfully following the view taken by the Tribunal in the assessee’s own case for assessment year 2009-10, I uphold the impugned order. The ld. DR did not press the Cross Objection filed by the assessee.

4.

In the result, both the appeal and the Cross Objection are dismissed.

The decision was pronounced in the open court on 01st June, 2017.

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