2023 (10) TMI 783 - HC - Income Tax

Depreciation of securities - contribution to Punjab Sind Bank Employee s Pension Fund Trust - ITAT and CIT(A) deleted addition - HELD THAT - As insofar as proposed questions A B are concerned, they are covered by the decision of the coordinate bench of this court in Punjab Sind Bank 2019 (11) TMI 342 - DELHI HIGH COURT Disallowance u/s 14A r.w.r. 8D(2)(ii) and 8D(2)(iii) - ITAT and CIT(A) deleted addition - HELD THAT - This issue is covered by the decision dated 09.09.2021, rendered in case South Indian Bank 2021 (9) TMI 566 - SUPREME COURT We may note that there appears to be no dispute that subject shares were held as stock in trade by the respondent/assessee. Therefore, in any event, recourse to Section 14A could not have been taken which is concerned with investments. No substantial question of law arises for our consideration.

Summary

Issues involved:
Delay in re-filing the appeal; Appeal challenging ITAT order regarding depreciation of securities, disallowance of contribution to pension fund, and disallowance under section 14A.

Delay in re-filing the appeal:
An application was filed seeking condonation of a 370-day delay in re-filing the appeal. The respondent did not oppose the request, and the application was allowed, leading to its disposal.

Appeal challenging ITAT order:
The appeal pertains to the Assessment Year 2013-14 and seeks to challenge the ITAT order regarding various issues. The appellant raised questions concerning the deletion of additions made by the AO, including depreciation of securities, disallowance of contribution to the pension fund, and disallowance under section 14A.

Depreciation of securities:
The appellant contended that the depreciation claimed by the assessee was not justified as investments were not shown as "stock in trade." The senior standing counsel informed that this issue was covered by a previous court decision, and no substantial question of law arose for consideration.

Disallowance of contribution to pension fund:
The appellant challenged the deletion of the disallowance made by the AO regarding the contribution to the pension fund. The counsel indicated that this issue was also covered by a previous court decision, and no substantial question of law arose for consideration.

Disallowance under section 14A:
The appellant contested the deletion of disallowance made by the AO under section 14A. It was noted that the shares were held as stock in trade by the assessee, and therefore, Section 14A could not have been applied. The court found that no substantial question of law arose for consideration in this regard.

Closure of the appeal:
Given the circumstances and the information about a Special Leave Petition being preferred, the court closed the appeal. The parties were instructed to act based on the digitally signed copy of the order.