2021 (9) TMI 1248 - AT - Income Tax

CIT-A upholding the order passed u/s. 250 granting part relief out of disallowances made u/s. 14A of I.T. Act read with Rule 8D - HELD THAT - Bare perusal of the impugned order passed by the ld. CIT(A) goes to prove that relief has already been granted to the assessee by ld. CIT (Appeals)-16 vide as disallowance u/s. 14A of the Act read with rule 8D of the I.T. Rules made by the AO has already been deleted. Even assessee has filed the present appeal by raising vague and ambiguous ground from which it is difficult to discern as to what relief is being sought - finding no illegality or infirmity in the impugned order passed by the ld. CIT(A), present appeal filed by the assessee is hereby dismissed.

Summary

Issues:
Disallowance under section 14A of the Income-tax Act read with Rule 8D.

The judgment pertains to an appeal filed by M/s. RLF Limited seeking to set aside an order passed by the Commissioner of Income-tax (Appeals) for the assessment year 2012-13. The primary issue revolves around the disallowance made under section 14A of the Income-tax Act read with Rule 8D. The Assessing Officer noted investments in shares, the income from which did not form part of the total income. The AO made a disallowance of ?40,82,567, out of which the assessee had already made a suo motu disallowance of ?25,53,238. The remaining amount was added back to the income of the assessee. The assessee contended that no disallowance was warranted based on a decision of the Hon'ble Delhi High Court in a specific case. The matter was taken to the ld. CIT(A), who dismissed the appeal. The assessee then approached the Tribunal with the same issue.

The Tribunal noted that the assessee did not appear despite notice, and the appeal was decided based on the submissions of the Revenue's Departmental Representative and available documents. The Tribunal reviewed the impugned order of the ld. CIT(A) and observed that relief had already been granted to the assessee in a previous order by ld. CIT (Appeals)-16. The ld. CIT(A) had allowed relief to the appellant in a prior order, and the appeal effect had been given, resulting in the deletion of the disallowance under section 14A of the Act read with Rule 8D. The Tribunal found that the grounds raised by the assessee in the present appeal were vague and ambiguous, making it difficult to ascertain the relief sought. Consequently, the Tribunal found no illegality or infirmity in the order of the ld. CIT(A) and dismissed the appeal filed by the assessee.

In conclusion, the Tribunal upheld the decision of the ld. CIT(A) to grant relief to the assessee, as the disallowance under section 14A of the Income-tax Act read with Rule 8D had already been deleted in a previous order. The Tribunal dismissed the appeal filed by the assessee, emphasizing the importance of clear and specific grounds for appeal.