M/S HIMUDA,SHIMLA vs. ACIT, CIRCLE, SHIMLA
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आयकर अपील"य अ"धकरण,च"डीगढ़ "यायपीठ, च"डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘A’,CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER & SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 17/CHD/2023 "नधा"रण वष" / Assessment Year : 2017-18 बनाम HIMUDA The DCIT/ACIT, HIMUDA Nigam Vihar, Circle, Shimla Shimla "थायी लेखा सं./PAN NO: AAALH0034K अपीलाथ"/Appellant ""यथ"/Respondent
( HYBRID HEARING ) "नधा"रती क" ओर से/Assessee by : Shri Rajeev Sood, CA राज"व क" ओर से/ Revenue by : Shri Anil Sharma, Sr.DR सुनवाई क" तार"ख/Date of Hearing : 02.04.2024 उदघोषणा क" तार"ख/Date of Pronouncement : 03.04.2024 आदेश/Order Per Sanjay Garg, Judicial Member:
The present appeal has been preferred by the assessee against the order dated 15.12.2022 of the Ld. Commissioner of Income Tax (Appeals), [hereinafter referred to as’ CIT(E)’], National Faceless Appeal Centre (NFAC), Delhi, for the Assessment Year 2017-18. ITA No. 17-Chd-2023 HIMUDA, Shimla 2
The sole issue raised in this appeal is relating to the disallowance made by the Assessing Officer of Rs. 1,22,77,245/- u/s 14A of the Income Tax Act, 1961 (in short 'the Act') in respect of proportionate expenditure deemed to have been incurred for earning of tax-exempt income.
At the outset, the ld. Counsel for the Assessee, pointing out to the records, stated that the Assessee during the year did not make any investment which was capable of earning of tax exempt income. That the only investment made by the Assessee was in the shape of FDRs, the interest from which was offered as income for taxation. Therefore, the provisions of Section 14A of the Act are not applicable in this case.
The ld. DR could not rebut the aforesaid contention of the Assessee.
Since in this case neither the Assessee made any investment which was capable of earning of tax-exempt income nor any tax- exempt income was earned by the Assessee during the year, therefore, the provisions of section 14A of the Act are not attracted in this case. The impugned additions made by the lower authorities are not sustainable in the eyes of law and the same are ordered to be deleted.
ITA No. 17-Chd-2023 HIMUDA, Shimla 3 In the result, the appeal of the Assessee stands allowed.
Order pronounced on 03.04.2023. (VIKRAM SINGH YADAV) Judicial Member Dated : 03 .04.2024 “आर.के.”
आदेशक"""त"ल"पअ"े"षत/ Copy of the order forwarded to : 1. अपीलाथ"/ The Appellant
""यथ"/ The Respondent 3. आयकरआयु"त/ CIT
"वभागीय""त"न"ध, आयकरअपील"यआ"धकरण, च"डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड"फाईल/ Guard File आदेशानुसार/ By order, सहायकपंजीकार/
