2019 (4) TMI 2053 - AT - Income Tax

Disallowance of interest - Allowable business expenditure or not? - Disallowance of discount claim - addition u/s 14A r.w.r. 8D - HELD THAT - We find that this issue has been decided in favour of the assessee by the Coordinate Bench in assessee s own case 2019 (4) TMI 414 - ITAT AHMEDABAD The Revenue has not got any contrary binding precedent by the Hon ble Jurisdictional High Court. Therefore, the ground raised by the assessee is allowed.

Summary

Issues:
Cross appeals by the Assessee and Revenue against the order of Commissioner of Income Tax (Appeals) dated 01.02.2017 for the Assessment Year 2012-13.

Analysis:

1. Revenue's Appeal (ITA No. 1227/Ahd/2017):
- The Revenue raised grounds challenging the treatment of interest as business expenditure and the partial disallowance under section 14A of the Income Tax Act, 1961.
- The Tribunal noted that the issues raised by the Revenue were already decided against them in previous cases and by the High Court. The Tribunal dismissed the Revenue's appeal based on precedents and consistent views.

2. Assessee's Appeal (ITA No. 1147/Ahd/2017):
- The Assessee challenged the disallowance of discount claim, disallowance under section 14A, and levy of interest under section 234D.
- The Tribunal found that the issues raised by the Assessee were covered by previous decisions in the Assessee's favor. The Tribunal allowed the Assessee's appeal, directing the Assessing Officer to delete the additions made.
- The Tribunal held that the disallowance under section 14A should be deleted, as it was consistent with previous decisions and no new facts were presented.
- The Tribunal also addressed the levy of interest under section 234D, holding it to be consequential and ruling accordingly.

In conclusion, the Tribunal dismissed the Revenue's appeal and allowed the Assessee's appeal based on the application of legal precedents and consistent decisions in similar cases. The judgment provided detailed reasoning for each issue raised by both parties, ensuring a fair and thorough analysis of the matters at hand.