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TMI Blog2022 (6) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... sent appeal has been filed under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as 'Act') against the impugned final judgment and order dated 19th February, 2020 passed by the Income Tax Appellate Tribunal (in short "the Tribunal") in I.T.A. No. 74/Kol/2018. Brief Facts: 2. M/s Punjab National Bank (Erstwhile United Bank of India) i.e., Respondent/Assessee (hereinafter referred to as 'Respondent') filed its return of income under Section 139(1) of the Act on 4th October, 2010 for Assessment Year 2010-11. The case was selected for scrutiny under Computer Assisted Scrutiny Selection (CASS) and a notice under Section 143 (2) of the Act was served upon the Respondent. Subsequently, notices under Section 142 (1) of the Act w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt i.e. Revenue (hereinafter referred to as 'Appellant') did not file any appeal against the order passed by CIT (Appeals) deleting the disallowance made by the JAO under Section 14A of the Act read with Rule 8D(2)(ii). 8. Aggrieved by the order of the learned CIT (Appeals) confirming the above noted disallowances under Section 40(a)(ia) of the Act for non-deposit of TDS and section 14A read with Rule 8D(2)(iii) on account of exempt income, the Respondent preferred an appeal before the Tribunal. 9. The Tribunal vide its impugned order dated 19th February, 2020 allowed the appeal of the Respondent with respect to the aforesaid disallowances. With respect to disallowance made by the JAO under Section 40(a)(ia) of the Act the Tribunal held a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order dated 19.11.2018, passed by the Division Bench of Delhi Tribunal in the case of Nice Bombay Transport (P) Ltd,in ITA No.1331/Del/2012for the Assessment Year 2008-09 whereby the issue relating to section 14A read with rule 8D in respect of shares held in stock has been discussed and adjudicated in favour of assessee. Learned counsel for the assessee submitted that the present issue is squarely covered by the aforesaid order of the Tribunal, a copy of which was also placed before the Bench. 16. We see no reasons to take any other view of the matter than the view so taken by the Division Bench of ITAT, New Delhi vide order dated 19.11.2018. .............. We note that the issue is squarely covered in favour of assessee by the judg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt in the case of Commissioner of Income Tax v. Calcutta Export Company reported in 2018 404 ITR 654 (SC) and in this regard paragraph 30 of the said judgment is relevant: "...30) Hence, in the light of the forgoing discussion and the binding effect of the judgment given in Allied Motors (supra), we are of the view that the amended provision of section 40(a)(ia) of the Income-tax Act should be interpreted liberally and equitably and applies retrospectively from the date when section 40(a)(ia) was inserted i.e., with effect from the assessment year 2005-06 so that an assessee should not suffer unintended and deleterious consequences beyond what the object and purpose of the provision mandates. As the developments with regard to the sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the Appellant has not disputed the aforesaid facts and on this ground additionally, no challenge can be maintained to the deletion of the disallowance made under this Rule. 16. The learned counsel for the Appellant has contended that the decision of the Tribunal deleting the addition of Rs. 1,58,00,000/- made by the JAO under Section 14A of the Act read with Rule 8D(iii) is incorrect since the said amount was offered for disallowance suo moto by the Respondent. 17. In this regard, the Tribunal has observed that the facts of the Respondent in the present appeal are similar to the order passed by another Bench of the Tribunal in the case of Nice Bombay Transport Pvt. Ltd. (ITA No. 1331/Del/2012) wherein issue relating to Section 14A of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case, whenever dividend is declared by the investee-company that would necessarily be earned by the assessee and the assessee alone. Therefore, even at the time of investing into those shares, the assessee knows that it may generate dividend income as well and as and when such dividend income is generated that would be earned by the assessee. In contrast, where the shares are held as stock-in-trade, this may not be necessarily a situation. The main purpose is to liquidate those shares whenever the share price goes up in order to earn profits. In the result, the appeals filed by the Revenue challenging the judgment of the Punjab and Haryana High Court in State Bank of Patiala also fail, though law in this respect has been clarified hereinab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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