DCIT, CIRCLE- 17(2), , NEW DELHI vs. NATIONAL FERTILIZERS LTD., NEW DELHI

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ITA 4023/DEL/2017Status: DisposedITAT Delhi13 August 2025AY 2012-13Bench: SHRI S. RIFAUR RAHMAN (Accountant Member), SHRI ANUBHAV SHARMA (Judicial Member)6 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal noted that there was no exempt income earned by the assessee during the year. The CIT(A) had followed a High Court decision in favour of the assessee. Since the Revenue could not present any contrary facts or law, the findings of the CIT(A) were upheld.

What were the facts?

The Revenue preferred an appeal against the order of the CIT(A) which had allowed the assessee's appeal partly. The issue at hand pertained to disallowance under Section 14A of the Act read with Rule 8D for AY 2012-13.

What were the issues?

Whether disallowance under Section 14A read with Rule 8D is permissible when no exempt income has been earned by the assessee.

Which sections of the Income-tax Act were involved?

Section 14A,Section 143(3),Section 8D

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Income Tax Appellate Tribunal, DELHI BENCHES : E : NEW DELHI

Before: SHRI S. RIFAUR RAHMAN & SHRI ANUBHAV SHARMA

For Appellant: Shri Ved Jain, Advocate;, Shri Pawan Garg, CA &, Ms Ishika Dua, CA
For Respondent: Ms Amisha S. Gupt, CIT-DR
Hearing: 06.08.2025Pronounced: 13.08.2025
1.

This appeal is preferred by the Revenue against the order dated 16.02.2017 of the Commissioner of Income-tax (Appeals)-39, New Delhi (hereinafter referred to as the Ld. First Appellate Authority or ‘the Ld. FAA’, for short) in Appeal No.142/15-16 arising out of the appeal before it against the order dated 27.02.2015 passed u/s 143 (3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by the DCIT, Circle-18(1), New Delhi (hereinafter referred to as the Ld. AO).

2.

Heard and perused the record. On hearing both the sides, we find that by order dated 17.08.2021, the appeal of the revenue for AY 2012-13 was allowed partly on various grounds and with regard to grounds No.7 to 9 in appeal of revenue, in respect of disallowance u/s 14A of the Act r.w.r 8D, vide Tribunal order in Miscellaneous Application No.172/Del/2021 dated 07.05.2025, it was observed that no conclusive finding with regard to determination of the ground in favour or against the assessee has been made. Therefore, to the extent of deciding grounds No.7 to 9 afresh, the order was recalled and the matter has been listed before us.

3.

In regard to these grounds, the admitted state of affairs is that there was no exempt income during the year. The ld.CIT(A) has followed the decision of the Hon’ble jurisdictional High Court in the case of Cheminvest Limited vs. CIT, 378 ITR 33 to give benefit to the assessee. The ld. DR could not cite before us any fact or law to the contrary. The law being settled that actual earning of exempt income gives rise to examining the issue of disallowance u/s 14A, we find the findings of the ld.CIT(A) require no interference.

4.

The grounds No.7 to 9 in the appeal of the Revenue in

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