M S Royal Builders Amp Developers Private Limited Ludhiana v. Ito Ludhiana

In The Income Tax Appellate Tribunal Chandigarh Benches Smc Chandigarh Before Ms Diva Singh Judicial Member Ita No 925 Chd 2017 Assessment Yea R 2012 13 M S Royal Builders Vs The Ito Developers Pvt Ltd Ward 7 3 The Mall Ludhiana Ludhiana Pan No Aadcr 4953 E Appellant Respondent Appellant By Shri Gurjeet Singh Respondent By Smt Chander Kanta Sr Dr Date Of Hearing 14 11 2017 Date Of Pronouncement 13 12 2017 Order The Present Appeal Has Been Filed By The Assessee Ass Ailing The Correctness Of The Order Dated 25 04 2017 Of Ld Cit App Eals 4 Ludhiana Pertaining To 2012 13 Assessment Year In The Present Appeal Two Grounds Have Been Raised By The Assessee On The Same Issue Ho Wever At The Time Of Hearing The Arguments Were Advanced Only In Respect O F Ground No 2 Which Reads As Under 2 Because The Action Is Being Challenged On The Fa Cts Law For Making A Disallowance Of Rs 5 42 296 U S 14 A R W Rule 8 D Wherein None Di Vidend Has Accrued Received By The Assessee During The F Y 2011 12 2 The Ld Ar Inviting Attention To The Assessment Order Submitted That In The Facts Of The Present Case No Dividend Income Had Been Ea Rned By The Assessee In The Year Under Consideration It W As Submitted That The Arguments In Respect Of This Fact Have Been Recorde D In Para 3 1 Of The Assessment Order Inviting Attention To Para 3 7 Of The Assessment Order It Was Submitted That The Ao Was Of The View That It Is Not Material Whether Dividend Income Is Earned Or Not The Said Order It Was Submitted Has Been Upheld Relying Upon The Circular No 5 2014 F No 225 182 2013 Ita Ii Dated 11 02 2014 Reliance Was Pla Ced Upon The Decision Of The Honble Punjab Haryana High C Ourt In The Case Of Cit Vs Lakhani Marketing In Ita 970 2000 O M 02 04 2014 And Order Of The Itat Dated 31 10 2017 In Ita 1425 2016 In The Case Of Ita 925 Chd 2017 A Y 2012 13 Page 2 Of 2 Mehar Chand Bhatia V Acit Ludhiana It Was Submitted Tha T No Disallowance U S 14 A On The Facts Was Maintainable Invitin G Attention To The Said Decision It Was Submitted That The Judicial Pre Cedent As Laid Down By The Honble Delhi High Court In The Case Of Holcim India P Ltd 90 Cch 81 Del And Cheminvest Ltd V Cit 378 Itr 33 Were Relied Upon 3 Ld Sr Dr Relies Upon The Impugned Order No Contrary Decision Either On Facts Or Law Was Cited In Order To Canvass A Contrary Vie W 4 I Have Heard The Submissions And Perused The Materia L Available On Record In The Light Of The Submissions Of The Parties B Efore The Bench Wherein On Facts There Is No Dispute In As Much As In Th E Facts Of The Present Case No Dividend Income Has Been Earned By Th E Assessee In The Year Under Consideration Considering Judicial Precedent R Elied Upon As Considered By The Honble Delhi High Court And Honble P Unjab Haryana High Court In The Cases Of Holcim India P Ltd 90 Cch 81 Del Cheminvest Ltd V Cit 378 Itr 33 Del And Cit Vs Lakh Ani Marketing Inc P H I Find That Issue Is No Longer Res Integra Rely Ing Upon The Precedent Available On The Facts As They Stand The Appe Al Of The Assessee Is Allowed And The Addition Is Directed To Be Deleted Said Order Was Pronounced In The Open Court At The Time Of Hearing Itse Lf In The Presence Of The Parties 5 In The Result The Appeal Of The Assessee Is Allowed Order Pronounced In The Open Court On 13 12 2017 Sd Diva Singh Judicial Member Poonam Copy To 1 The Appellant 2 The Respondent 3 The Cit 4 The Cit A 5 The Dr Asstt Registrar Itat Chandigarh