2018 (1) TMI 1385 - HC - Income Tax

Addition u/s 14A - calculation of disallowance figures - Tribunal did not accept the figure of disallowance worked out by the assessee - Held that - This issue stands concluded against the Revenue and in favour of the Appellant-Assessee by decision of this Court in Principal Commissioner of Income Tax v/s. Reliance Capital Asset Management Ltd. (2017 (10) TMI 177 - BOMBAY HIGH COURT). Decision of this Court the question as proposed stands concluded against the Revenue. Therefore no substantial question of law arises for our consideration.

Summary

Issues Involved:
Challenge to order of Income Tax Appellate Tribunal regarding Assessment Year 2009-10; Interpretation of Section 14A of the Income Tax Act and Rule 8D of the Income Tax Rules.

Analysis:

1. Challenge to Tribunal's Order:
The High Court was presented with an appeal challenging the order dated 9th July, 2014 passed by the Income Tax Appellate Tribunal (the Tribunal) in relation to the Assessment Year 2009-10. The main issue raised by the Revenue was whether the Tribunal was justified in upholding the view of the Commissioner of Income Tax (Appeals) that Rule 8D of the Income Tax Rules could not be invoked in the absence of the Assessing Officer recording his nonsatisfaction with the claim of the Assessee under Section 14A of the Act.

2. Legal Interpretation of Section 14A and Rule 8D:
The Counsel for both parties referred to a previous decision of the Court in Principal Commissioner of Income Tax v/s. Reliance Capital Asset Management Ltd., where a similar issue was addressed. It was argued that the issue raised in the present case had already been settled in the earlier decision, favoring the Appellant-Assessee. The Court, taking into account the precedent, concluded that the question posed by the Revenue was already decided against them, and hence, no substantial question of law arose for consideration.

3. Judgment and Dismissal of Appeal:
Based on the precedent and the established legal position, the High Court dismissed the appeal. The Court's decision was influenced by the previous ruling, which had already settled the matter in favor of the Appellant-Assessee. Consequently, the Court held that there was no need to delve into the legal issues further, as the question raised by the Revenue had already been conclusively addressed in a prior judgment. The appeal was dismissed, and no costs were awarded in the matter.

In summary, the High Court dismissed the appeal challenging the Tribunal's order regarding the invocation of Rule 8D of the Income Tax Rules in relation to Section 14A of the Income Tax Act for the Assessment Year 2009-10. The decision was based on a previous ruling that had already settled the legal position in favor of the Appellant-Assessee, rendering the issue raised by the Revenue as already decided and not warranting further consideration.