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[Cites 3, Cited by 2]

Income Tax Appellate Tribunal - Delhi

Hughes Network Systems India Ltd., New ... vs Dcit, New Delhi on 2 January, 2017

              IN THE INCOME TAX APPELLATE TRIBUNAL
                    DELHI BENCH 'C
                                'C': NEW DELHI

          BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT AND
               SHRI KULDIP SINGH,
                            SINGH, JUDICIAL MEMBER

                         ITA No.
                             No.2811/Del/2014
                       Assessment Year : 2008-
                                         2008-09


M/s Hughes Network              Vs.    Deputy Commissioner of
Systems India Limited,                 Income Tax,
1, Shivaji Marg,
           Marg,                       Circle-
                                       Circle-12(1),
Westend Greens, NH-
                 NH-8,                 New Delhi.
New Delhi - 110 037.
PAN : AAACH3025R.
     (Appellant)                           (Respondent)

            Appellant by         :    Shri Neeraj Jain and
                                      Shri Anshul Sachar, Advocates.
            Respondent by        :    Shri Amrit Lal, Senior DR.

     Date of hearing             :    22.12.2016
     Date of pronouncement       :    02.01.2017

                                 ORDER

PER G.D. AGRAWAL, VP :-

This appeal by the assessee for the assessment year 2008-09 is directed against the order of learned CIT(A)-XX, New Delhi dated 18th February, 2014.

2. The only ground raised by the assessee in this appeal is against the disallowance under Section 14A of the Income-tax Act, 1961 amounting to `10,59,986/-.

3. At the time of hearing before us, the learned counsel for the assessee pointed out that there is no exempt income during the year under consideration. Therefore, in view of the decision of Hon'ble Jurisdictional High Court in the case of Cheminvest Limited Vs. CIT - [2015] 378 ITR 33 (Delhi), no disallowance u/s 14A can be made.

2 ITA-2811/Del/2014

4. Learned DR, on the other hand, relied upon the orders of authorities below.

5. We have carefully considered the arguments of both the sides and perused the material placed before us. We find this issue to be covered in favour of the assessee by the decision of Hon'ble Jurisdictional High Court in the case of Cheminvest Limited (supra) and CIT-IV Vs. Holcim India P.Ltd. in ITA No.486/2014 & 299/2014, order dated 5th September, 2014, wherein Hon'ble Jurisdictional High Court has held that if there is no exempt income, then no disallowance u/s 14A of the Act can be made. Admittedly, in the case of the assessee, there is no exempt income. Therefore, respectfully following the above decisions of Hon'ble Jurisdictional High Court, we delete the disallowance made u/s 14A of the Act.

6. In the result, the appeal of the assessee is allowed.

Decision pronounced in the open Court on 02.01.2017.

                     Sd/-                                    Sd/-
          (KULDIP SINGH)
                  SINGH)                               (G.D. AGRAWAL)
                                                             AGRAWAL)
        JUDICIAL
        JUDICIAL MEMBER                                VICE PRESIDENT

VK.

Copy forwarded to: -

1.    Appellant      : M/s Hughes Network Systems India Limited,

1, Shivaji Marg, Westend Greens, NH-

NH-8, New Delhi - 110 037.

2. Respondent : Deputy Commissioner of Income Tax, Circle-

Circle-12(1), 12(1), New Delhi.

3. CIT

4. CIT(A)

5. DR, ITAT Assistant Registrar