DCIT, CIRCLE- 17(2), , NEW DELHI vs. NATIONAL FERTILIZERS LTD., NEW DELHI
Income Tax Appellate Tribunal, DELHI BENCHES : E : NEW DELHI
Before: SHRI S. RIFAUR RAHMAN & SHRI ANUBHAV SHARMAAssessment Year: 2012-13
PER ANUBHAV SHARMA, JM:
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 2
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).
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.
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 juri ictional 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. 3
The grounds No.7 to 9 in the appeal of the Revenue in ITA No.4023/Del/2017 stands decided against the Revenue. In the result, the appeal of the Revenue is partly allowed.
Order pronounced in the open court on 13.08.2025. (RIFAUR RAHMAN) (ANUBHAV SHARMA)
ACCOUNTANT MEMBER
JUDICIAL MEMBER
Dated: 13.08.2025. dk