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M/s Vinco Metals Pvt. Ltd., A-78, Ground Floor, Jhilmil Ind. Area, Shahdara, Delhi 110 095 Vs. Asstt. Commissioner Of Income Tax, Central Circle-16, New Delhi 55
June, 25th 2015
                                                           ITA NO.3993/Del/2013

                      DELHI BENCH "H", NEW DELHI
                   SHRI H.S. SIDHU, JUDICIAL MEMBER

                    I.T.A. No. 3993/DEL/2013
                           A.Y. : 2009-10
A-78, GROUND FLOOR,                 VS. INCOME TAX,
JHILMIL IND. AREA,                        CENTRAL CIRCLE-16,
SHAHDARA,                                 NEW DELHI ­ 55
DELHI ­ 110 095
(APPELLANT)                                    (RESPONDENT)

            Assessee by               :    Sh. K.P. Garg, CA
           Department by              :    SH. J.P. Chandrekar, Sr. DR

                      Date of Hearing : 17-06-2015
                      Date of Order       : 24-06-2015
     This appeal by the Assessee is directed against the Order of
the Ld. Commissioner of Income Tax (Appeals)-XXXII, New Delhi
dated 31.5.2013 pertaining to assessment year 2009-10.

2.   The assessee has raised the following grounds:-

     "1.    The appellant    denies his liability to tax as determined
            and computed by the AO and the manner in which the
            demand of Rs. 40,943/- has been so determined and
            upheld by the Ld. CIT(A).

                                                               ITA NO.3993/Del/2013

     2.     The Ld. CIT(A) has erred in law and on facts in sustaining
            the following additions which are impugned in this

                  -      Rs.       1,32,508/-   being    5%       of    average
                         investment u/s. 14A applying Rule 8D to
                         "business / trade investments" made by the
                         company in         the course of its business as
                         NBFC, the income of which is duly accounted
                         for and assessed to tax."

3.   The brief facts of the case are that the assessee company was
engaged in the business of copper trading and had shown income
under the head business, income from house property and capital
gain. The return of income in this case was filed on 17.9.2009
showing total income of Rs. 7,10,996/-. Subsequently, the notices
u/s. 142(1) and 143(2) of the Act alongwith questionnaire were
issued by the AO.       The assessment was completed by the AO u/s.
143(3) vide his order dated 21.10.2011              at an income of Rs.
8,34,500/- by making the following additions :-

            (a)   Disallowance u/s. 14A                  Rs. 1,32,508/-

            (b)   Income from House Property             Rs.     16,800/-

            (c)   Income from LTCG (Loss)               (-) Rs. 59,859/-

4.   Aggrieved        with   the    aforesaid   assessment       order     dated
21.10.2011, the assessee appealed before the Ld. CIT(A), who vide
impugned order dated 31.5.2013 has dismissed appeal of the

5.   Against the order of the Ld. CIT(A) dated 31.5.2013 assessee
now appealed before the Tribunal.

                                                     ITA NO.3993/Del/2013

6.    Ld. Counsel of the assessee stated that the AO has wrongly

determined the demand of Rs. 40,943/- without any prescribed

manner and similarly, the Ld. First Appellate Authority has not

adjudicated and decided this ground raised by the assessee before

him. He further stated that AO        has made the addition of

Rs.1,32,508/- being 5% average investment u/s. 14A by applying

the rule 8D to the business made by the Company in the course of

its business as NBFC.   The income of which is duly accounted for

and assessed to tax. He further stated that for the assessment year

2008-09 assessee has given similar explanation in the assessment

year in dispute, but the Revenue Authority has not made any

addition. He requested that the impugned order may be cancelled

and appeal filed by the assessee may be allowed.

6.1   On the contrary, Ld. DR relied upon the order of the
authorities below and stated that the AO has rightly determined and
computed the tax liability as well as rightly made the addition in
dispute on the basis of the material available on record, therefore,
the appeal filed by the assessee may be dismissed.

7.    We have heard both the parties and perused the records

especially the orders of the revenue authorities; contentions raised

by the assessee in the grounds of appeal filed by the assessee. We

are of the considered view that as argued by the Ld. Counsel of the

assessee that assessee has denied the liability to tax and

determined and computed by the AO and the manner in which the

                                                     ITA NO.3993/Del/2013

demand of Rs. 40,943/- has been so determined. We find that the

Ld. CIT(A) has not adjudicated this ground raised by the assessee

and we also find that the AO has not commented in the assessment

order on the determination of the demand of Rs. 40,943/-, therefore,

the issue involved in ground no. 1 requires detailed examination at

the level of the AO. Accordingly, in the interest of justice, we set

aside the issue in dispute to the file of the AO to decide the same

afresh under the law, after giving adequate opportunity of being


8.   With regard to ground no. 2 regarding sustaining the addition

of Rs. 1,32,508/- being 5% of average investment u/s. 14A applying

the Rule 8D to the business/trade investment made by the Company

in the course of its business as   NBFC, the income of which is duly

accounted for and assessed to tax is concerned, we find that on the

basis of similar explanation, no addition was made in earlier years

upto 2008-09, all of which have been scrutiny examination cases

since AY 2001-02.    Therefore, in our considered opinion, the issue

in dispute involved in ground no. 2 needs to be adjudicated afresh,

under the law. Accordingly, we remit the issue in dispute to the file

of the AO to consider the same afresh, after giving adequate

opportunity of being heard.

                                                       ITA NO.3993/Del/2013

9.    In the result, the Appeal filed by the Assessee stands allowed

for statistical purposes.

      Order pronounced in the Open Court on 24/06/2015.

      Sd/-                                               Sd/-

[N.K. SAINI]                                     [H.S. SIDHU]
ACCOUNTANT MEMBER                             JUDICIAL MEMBER
Date 24/6/2015
Copy forwarded to: -
1.    Appellant -
2.    Respondent -
3.    CIT
4.    CIT (A)
5.    DR, ITAT
                            TRUE COPY
                                           By Order,

                                                Assistant Registrar,
                                                ITAT, Delhi Benches

    ITA NO.3993/Del/2013

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