Income Tax Appellate Tribunal - Delhi
M/S. Dalmia Finance Ltd., New Delhi vs Dcit, New Delhi on 2 August, 2017
IN THE INCOME TAX APPELLATE TRIBUNAL
(DELHI BENCH 'SMC' : NEW DELHI)
BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER
ITA No. 271/Del/2017
Assessment Year: 2012-13
M/S DALMIA FINANCE LTD. VS. DCIT, CIRCLE-7(1),
2ND FLOOR, INDRAPRAKASH, NEW DELHI
21, BARAKHAMBA ROAD,
NEW DELHI - 110 001
(PAN: AABCD5533H)
(APPELLANT) (RESPONDENT)
Assessee by : Sh. Vinod Kumar Bindal, CA
Revenue by : Sh. T. Vasanthan, Sr. DR
ORDER
This appeal has been filed by the Assessee against the Order dated 28.5.2016 of the Ld. Commissioner of Income Tax (Appeals)- 12, New Delhi relevant to assessment year 2008-09.
2. The grounds raised in the appeal read as under:-
1. The learned CIT(A) erred in law and on facts in passing an order in summary manner without adjudicating each and every ground for which detailed oral and written submissions were made with evidence but those have been ignored in totality. The impugned perverse appellate order must be reversed.
2. The learned CIT(A) erred in law and on facts in confirming the disallowance Rs. 1,35,835/- towards 2 'loss from agricultural operation' as exempt loss, while ignoring the explanation an supporting documents that it was a genuine business expenditure wrongly declared under that head.
Thus, the disallowance so made must be reversed.
3. The learned CIT(A) erred in law and on facts in confirming the disallowance of Rs. 2,28,111/-
towards 'rent, rate & taxes' as non-revenue expenditure, while ignoring that the appellant company was conducting its land development business activities from the said premises. Thus, the disallowance so made must be reversed.
4. The learned CIT(A) erred in law and on facts in confirming the disallowance of Rs. 1,58,529 uls 14A r.w.r. 8D(2)(iii) towards expenditure incurred for earning of exempt income, whereas no such sum was factually incurred by the appellant nor any such nexus between the expenditure claimed and dividend earned has been established by the CIT(A). Thus, the disallowance so made must be deleted.
5. Without prejudice to Ground No.3 taken above, the learned CIT(A) erred in law and on facts in confirming the disallowance of Rs. 1,58,529/- uls 3 14A resulting into the total disallowance of Rs.
5,22,475/- made under the impugned proceedings, which, being more than the total expenditure of Rs.
4,57,600/- debited to the profit & loss account, cannot be permitted. Thus, the disallowance uls 14A, if held as validly made, should be reduced by the said excess sum accordingly.
6. The appellant craves the leave to add, substitute, modify, delete or amend all or any ground of appeal either before or at the time of hearing.
3. Facts narrated by the revenue authorities are not disputed by both the parties, hence, the same are not repeated here for the sake of brevity.
4. During the hearing, Ld. A.R. of the assessee, has stated that assessee has filed all the necessary documentary evidences before the AO as well as before the Ld. CIT(A) which has not been considered by both the authorities. He requested that the issue in dispute may be set aside to the file of the AO with the directions to decide the same as per law, after giving adequate opportunity of being heard to the assessee. He also undertakes that if the matter is set aside to the AO, the assessee will appear before the AO and fully cooperate with the AO and will not take any unnecessary adjournment. Ld. Counsel of the assessee also filed a Paper Book containing pages no. 1 to 49 having the copy of Details of expenses booked as loss on agricultural operations (a) a photocopy of the statement of account from agriculture operation for the year ended 31.3.2012 in the books of the assessee; (b) a photocopy of the debit 4 note dated 31.3.2012 raised by M/s ILAC Investment Limited; (c) a list showing nature of agriculture income and expenses; (2) a photocopy of the Memorandum of Association dated 13.8.2010 amongst the co-owners for development of property; (3) a photocopy of Development Agreement dated 13.8.2010 between the co-owners and the developer; 4(a) a photocopy of the ledger account of rent, rates and taxes as on 31.3.2012 in the books of the assessee; (b) a photocopy of the property tax invoice no. WGF/03/2011-12 dated 29.6.2011 issued by the other co-owner; (c) a photocopy of the property tax receipt for the FY 2011-12 from Municipal Corporation of Delhi; (5) a photocopy of the computation of assessable income, balance sheet and profit and loss account for the AY 2012-13 of the assessee; (6) a photocopy of the details of non- current investments for the year ended 31.3.2012 of the assessee; (7) a photocopy of the evidence for prose of GHCL shares from of M/s KK Securities Ltd. during the year; (8) A photocopy of the Circular No. SO 1949(E)[F.No. 370142/7/2016-TPL) dated 2.6.2016 of the CBDT regarding disallowance u/s. 14A of the Act; (9) a chart showing details of profit / loss for 10 years; (10) Definition of Strategic investment downloaded from economywatch.com; (11) photocopies of the following written submissions filed by the assessee during the appellate proceedings dated 22.7.2016, 14.8.2016, 22.8.2016 and 30.8.2016. Ld. Counsel of the assessee also certified that the above documents were placed on record of authorities below. He further stated that these documents were not appropriately considered by the authorities below.
5. On the contrary, Ld. DR opposed the request of the Ld. Counsel of the assessee.
6. I have heard both the parties and perused the records, especially the orders of the authorities below. I find that Ld. Counsel of the assessee filed a Paper Book containing pages no. 1 to 49 having the copy of (a) a photocopy of the statement of account from 5 agriculture operation for the year ended 31.3.2012 in the books of the assessee; (b) a photocopy of the debit note dated 31.3.2012 raised by M/s ILAC Investment Limited; (c) a list showing nature of agriculture income and expenses; (2) a photocopy of the Memorandum of Association dated 13.8.2010 amongst the co- owners for development of property; (3) a photocopy of Development Agreement dated 13.8.2010 between the co-owners and the developer; 4(a) a photocopy of the ledger account of rent, rates and taxes as on 31.3.2012 in the books of the assessee; (b) a photocopy of the property tax invoice no. WGF/03/2011-12 dated 29.6.2011 issued by the other co-owner; (c) a photocopy of the property tax receipt for the FY 2011-12 from Municipal Corporation of Delhi; (5) a photocopy of the computation of assessable income, balance sheet and profit and loss account for the AY 2012-13 of the assessee; (6) a photocopy of the details of non-current investments for the year ended 31.3.2012 of the assessee; (7) a photocopy of the evidence for prose of GHCL shares from of M/s KK Securities Ltd. during the year; (8) A photocopy of the Circular No. SO 1949(E)[F.No. 370142/7/2016-TPL) dated 2.6.2016 of the CBDT regarding disallowance u/s. 14A of the Act; (9) a chart showing details of profit / loss for 10 years; (10) Definition of Strategic investment downloaded from economywatch.com; (11) photocopies of the following written submissions filed by the assessee during the appellate proceedings dated 22.7.2016, 14.8.2016, 22.8.2016 and 30.8.2016, which has not been considered by the AO. In the interest of justice, I am of the view that issue in dispute deserve to be set aside to the file of the AO with the directions to decide the same as per law, after giving adequate opportunity of being heard to the assessee, after appreciating the documentary evidence filed in the shape of paper book, as mentioned above. The Assessee is also directed to fully cooperate with the AO and did not seek any 6 unnecessary adjournment and produce all the documentary evidences before him.
7. In the result, the Assessee's appeal is allowed for statistical purposes.
Order pronounced in Open Court on this 02-08-2017.
Sd/-
(H.S. SIDHU) JUDICIAL MEMBER Dated : 02-08-2017 SR BHATANGAR Copy forwarded to:
1.Appellant
2.Respondent
3.CIT
4.CIT(A), New Delhi.
5.CIT(ITAT), New Delhi.
AR, ITAT NEW DELHI.