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2024 (2) TMI 701 - AT - Income TaxDisallowance being amortization of lease payment - HELD THAT - As respectfully following the findings of the co-ordinate bench, in assessee s own case for A.Y. 2016-17 2022 (11) TMI 1447 - ITAT DELHI amortization portion of the lease taken from Noida authority is decided against the assessee and the challenge in respect of land at Vishakapatnam and Tuticorn is restored to the file of the Assessing Officer to be decided as per directions given in Assessment Year 2012-13.Appeals of the assessee are partly allowed for statistical purposes. Disallowance u/s 14A r.w.r. 8D - assessee submitted that admittedly for the assessment years under consideration the assessee has not earned any exempt income and therefore provisions of section 14A of the Act could not be attracted - HELD THAT - There is no dispute that the assessee has not earned any exempt income during the assessment years in question. The Coordinate Bench in assessee s own case for A.Y. 2016-17 2022 (11) TMI 1447 - ITAT DELHI has adjudicated identical issue in favour of the assessee. Claims of deemed tax credit under DTAA between India and Oman - HELD THAT - As decided in assessee s own case for A.Y. 2016-17 2022 (11) TMI 1447 - ITAT DELHI tax exemption on dividend is granted with the objective of promoting economic development within Oman by attracting investments.
Issues Involved:
1. Disallowance under Section 14A of the Income-tax Act, 1961. 2. Amortization of lease rentals. 3. Deemed tax credit under the Double Taxation Avoidance Agreement (DTAA) between India and Oman. Summary: 1. Disallowance under Section 14A of the Income-tax Act, 1961: The Revenue's appeals for both assessment years (A.Y. 2017-18 and 2018-19) challenged the deletion of disallowance under Section 14A read with Rule 8D. The Tribunal noted that the assessee had not earned any exempt income during the relevant years, which was consistent with the assessee's case for A.Y. 2016-17. The Tribunal referred to the Delhi High Court's decision in Era Infrastructure [India] Pvt Ltd, which held that no disallowance under Section 14A can be made if the assessee has not earned any exempt income. Consequently, the Revenue's appeals on this ground were dismissed. 2. Amortization of Lease Rentals: The assessee's appeals involved the disallowance of Rs. 42,65,058/- for amortization of lease payments. The Tribunal noted that the issue had been previously adjudicated in the assessee's favor for earlier years, specifically for A.Y. 2012-13 and A.Y. 2016-17. The Tribunal found parity in facts and followed the earlier decisions, deciding against the assessee for the lease taken from Noida Authority and restoring the issue for land at Visakhapatnam and Tuticorin to the Assessing Officer for de novo consideration. Both the assessee's appeals were partly allowed for statistical purposes. 3. Deemed Tax Credit under DTAA between India and Oman: The Revenue's appeals also contested the allowance of deemed tax credit under the DTAA between India and Oman. The Tribunal referred to the Delhi High Court's decision in the assessee's case for A.Y. 2010-11, which was upheld by the Supreme Court, confirming the assessee's entitlement to the deemed tax credit. The Tribunal also noted that the Coordinate Bench had decided the issue in favor of the assessee for A.Y. 2016-17. Therefore, the Revenue's appeals on this ground were dismissed. Conclusion: The assessee's appeals for A.Y. 2017-18 and 2018-19 were partly allowed for statistical purposes regarding the amortization of lease rentals, while the Revenue's appeals for both years were dismissed in their entirety. The Tribunal's decisions were consistent with earlier rulings in the assessee's favor on the issues of Section 14A disallowance and deemed tax credit under the DTAA.
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