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[Cites 3, Cited by 0]

Income Tax Appellate Tribunal - Delhi

Acit, New Delhi vs M/S. Rds Project Ltd., New Delhi on 28 February, 2018

               IN THE INCOME TAX APPELLATE TRIBUNAL
                    DELHI BENCHES : "F" NEW DELHI

          BEFORE SHRI R.K.PANDA, ACCOUNTANT MEMBER AND
               SMT. BEENA A PILLAI, JUDICIAL MEMBER

                         ITA No. 105/Del/2015
                             A.Y. 2011-12


ACIT                            RDS Project Ltd.
Circle 20(2)              vs.   427, Somdutt Chambers II
New Delhi                       9 Bhikaji Cama Place
                                New Delhi 110 066

                                PAN: AAACR 4761 J
          (Appellant)              (Respondent)




       Appellant   by            Sh. Atiq Ahmad, Sr.D.R.

       Respondent by             Sh. Somil Agrawal, Adv.
       Date of Hearing           12.02. 2018
       Date of Pronouncement


                                ORDER


PER BEENA A PILLAI,     JUDICIAL MEMBER

The present appeal has been filed by the revenue against order dated 01/10/14 passed by Ld. CIT (A) 17, New Delhi for assessment year 2011-12 on the following grounds of appeal:

"1. That on the facts and circumstances of the case and in law, the Ld.CIT(A) has erred in deleting addition of Rs.35,82,713/- made u/s 14A of the Act.
ITA 105/Del/2015 A.Y. 2011-12 ACIT vs. RDS Project Ltd.
2. That appellant craves to be allowed to add any fresh grounds of appeal and/or delete or amend any of the grounds of appeal."

2. Brief facts of the case are as under. Assessee filed its return of income on 30/09/11 and the assessment was completed by making an addition under section 14 A of the Income Tax Act, 1961 (the Act) amounting to Rs.35,82,713/-.

2.1. Aggrieved by the order of Ld. AO assessee preferred appeal before the Ld. CIT (A). Ld.CIT (A) while deciding the issue observed that assessee has not earned any exempt income during the year under consideration and therefore invoking of section 14 A of the Act is totally uncalled for. He thus deleted the addition made by Ld. AO.

2.2. Aggrieved by the order of Ld. CIT (A), revenue is in appeal before us now.

2.3. At the outset Ld.Counsel placed reliance upon the decision of Hon'ble Delhi High Court in the case of Cheminvest Ltd vs.CIT reported in 378 ITR 33 wherein it has been held that no disallowance under section 14 A of the Act could be made if there is no exempt income earned by assessee for the year under consideration.

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ITA 105/Del/2015 A.Y. 2011-12 ACIT vs. RDS Project Ltd.

2.4. Ld. DR could not controvert the findings of Ld. CIT (A) in respect of absence of exempt income for the year under consideration .

2.5. We, therefore, in the considered opinion respectfully following the decision of Hon'ble Delhi High Court in the case of Cheminvest Ltd versus CIT (supra), do not find any infirmity in the order of Ld. CIT (A) and the same is upheld. Accordingly ground raised by the revenue stands dismissed.

3. In the result appeal filed by revenue stands dismissed. Order pronounced in the open court on 28.02.2018.

                  Sd/-                                       Sd/-
       (R.K.PANDA)                                         (BEENA A PILLAI)
     Accountant Member                                      Judicial Member

Dated: 28th February, 2018.


*mv




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                                   ITA 105/Del/2015
                                     A.Y. 2011-12
                               ACIT vs. RDS Project Ltd.

Copy   of the Order forwarded to:
1.     Appellant
2.     Respondent
3.     CIT
4.     CIT(A)
5.     DR
6.     Guard File




                                                By Order




                                            Asst. Registrar
                                ITAT, Delhi Benches, New Delhi




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