PRINCIPAL COMMISSIONER OF INCOME TAX, DELHI-4 vs. M/S MMTC LTD.

2022 [Physical Hearing/Hybrid Hearing (as per request)] CM No.52443/2022 [Application filed on behalf of the appellant seeking condonation of delay of 79 days in re-filing the appeal]

The application is, accordingly, disposed of. CM No.52442/2022

Allowed, subject to the appellant/revenue filing legible copies of the annexures, at least three days before the next date of hearing. ITA 508/2022

The broad issue which arises for consideration is as to whether the disallowance made under Section 14A of the Income Tax Act, 1961 [in short, “Act”] by the Assessing Officer (AO) is sustainable in the facts and circumstances arising in the instant case.

The Income Tax Appellate Tribunal [in short “Tribunal”] has ruled in favour of the respondent/assessee.

Mr Ajit Sharma, who appears on behalf of the appellant/revenue, says that if Rule 8D of the Income Tax Rules 1962 [in short “Rules”] is applied, as it stood at the relevant point in time, then the AO’s order should have been sustained.

1 This is disputed both on facts and in law by the counsel for the respondent/assessee.

List the matter on 14.04.2023. 9. In the meanwhile, the counsel for the parties will file their written submissions, not exceeding three pages each, at least five days before the next date of hearing.