9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (8) TMI 678 - HC - Income TaxDisallowance u/s 14A r.w. Rule 8D - whether no exempt income was earned by the Appellant from this investment during this year ? - Whether ITAT was right in law in reinstating the deletion made on account of disallowance u/s 14A r.w. Rule 8D by the Commissioner of Income Tax (Appeals) notwithstanding the fact that no exempt income was earned by the Appellant from this investment during this year ? - whether the decision of the Special Bench of the Delhi Tribunal in the case of Vireet Investment Pvt. Ltd 2017 (6) TMI 1124 - ITAT DELHI can be pressed into service after the decision of the Hon ble Supreme Court in the case of Maxopp Investment Ltd. 2018 (3) TMI 805 - SUPREME COURT ? - HELD THAT - Substantial questions of law framed for consideration with regard to the decision of the Hon ble Supreme Court in the case of Maxopp Investment Ltd. Vs. CIT 2018 (3) TMI 805 - SUPREME COURT we have to necessarily hold that such questions cannot be canvassed, as the decision rendered by the Hon ble Supreme Court would cover those questions A decision has to be arrived at as regards the applicability of the decision of the Special Bench of the Delhi Tribunal in the case of Vireet Investment Pvt. Ltd., post the decision of the Hon ble Supreme Court in the case of Maxopp Investment Ltd. In fact, in the assessee s own case for the assessment year 2014-15 where the Tribunal remanded the matter to the Assessing Officer, the Tribunal took note of the decision of the Special Bench of the Delhi Tribunal in the case of Vireet Investment Pvt. Ltd., and passed such a remand order. We find that the effect of the remand order passed by the Special Bench of the Delhi Tribunal after the decision of the Hon ble Supreme Court in the case of Maxopp Investment Ltd., has not been specifically decided though the Departmental Representative made certain submissions to the said effect. Tribunal should take a decision on the above extracted two grounds, which were raised by the assessee in their cross objection and the Tribunal should decide as to the applicability and effect of the remand order of the Special Bench of the Delhi Tribunal in the case of Vireet Investment Pvt. Ltd., post the decision of the Hon ble Apex Court in the case of Maxopp Investment Ltd. We leave all the issues open and the assessee as well as the Revenue shall canvass all the points and more so because the decision of the Special Bench of the Delhi Tribunal in the case of Vireet Investment Pvt. Ltd., was not placed for consideration before the Hon ble Apex Court while deciding the case of Maxopp Investment Ltd. Appeal is partly allowed, substantial question of law Nos.1 and 2 are held against the assessee and in so far as the third substantial question of law is concerned, the matter is remanded to the Tribunal to consider the effect of the decision of the Special Bench of the Delhi Tribunal in the case of Vireet Investment Pvt. Ltd., post the decision of the Hon ble Supreme Court in the case of Maxopp Investment Ltd.
Issues:
1. Appeal against order dated 01.8.2018 made in ITA.No.710/Chny/2018 on the file of the Income Tax Appellate Tribunal, Chennai. 2. Substantial questions of law regarding disallowance under Section 14A of the Income Tax Act, 1961. 3. Interpretation of the decision of the Hon'ble Supreme Court in the case of Maxopp Investment Ltd. 4. Consideration of the decision of the Special Bench of the Delhi Tribunal in the case of Vireet Investment Pvt. Ltd. post the decision of the Hon'ble Supreme Court in the case of Maxopp Investment Ltd. Analysis: 1. The appeal under Section 260A of the Income Tax Act, 1961 challenged the order of the Income Tax Appellate Tribunal, Chennai, where the Revenue's appeal was allowed, and the assessee's cross objection was dismissed for the assessment year 2013-14. 2. The substantial questions of law raised focused on the reinstatement of the deletion made on account of disallowance under Section 14A, the reliance on the judgment of the Hon'ble Supreme Court in the case of Maxopp Investment Ltd., and the consideration of investments yielding exempt income for disallowance under Section 14A. 3. The Court held that the questions related to the decision of the Hon'ble Supreme Court in the Maxopp Investment Ltd. case could not be challenged separately as the Supreme Court's decision covered those aspects. 4. The assessee argued that the Tribunal did not consider the cross objection, emphasizing that investments not yielding exempt income should be excluded for computing disallowance under Section 14A. 5. The Revenue contended that the Supreme Court's decision in the Maxopp Investment Ltd. case settled the issue and justified the Tribunal's decision. 6. The Court considered the applicability of the decision of the Special Bench of the Delhi Tribunal in the Vireet Investment Pvt. Ltd. case post the Supreme Court's decision in the Maxopp Investment Ltd. case. 7. It was highlighted that the Tribunal should decide on the grounds raised in the cross objection and analyze the effect of the Special Bench's remand order in the Vireet Investment Pvt. Ltd. case after the Supreme Court's decision in the Maxopp Investment Ltd. case. 8. The Court partly allowed the appeal, holding against the assessee on substantial questions of law, and remanded the matter to the Tribunal to consider the impact of the Vireet Investment Pvt. Ltd. case post the Maxopp Investment Ltd. case decision.
|
