ASSISTANT COMMISSIONER OF INCOME TAX, MUMBAI vs. APAR INDUSTRIES LIMITED, MUMBAI

ITA 1474/MUM/2026Status: DisposedITAT Mumbai03 June 2026AY 2016-1710 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal restored the assessee's grounds related to Section 32AC to the CIT(A) for fresh adjudication. The Revenue's appeal regarding Section 14A disallowance was dismissed, upholding the CIT(A)'s view that disallowance cannot exceed exempt income.

What were the facts?

The assessee claimed deduction u/s 32AC for investment in new plant and machinery for the first time during appellate proceedings. The Revenue appealed against the CIT(A)'s decision to restrict disallowance u/s 14A to the quantum of exempt income.

What were the issues?

Eligibility of deduction for new plant and machinery claimed for the first time in appeal, and the quantum of disallowance under Section 14A when exempt income is earned.

Which sections of the Income-tax Act were involved?

Section 32AC,Section 14A

AI-generated summary — verify with the full judgment below

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER (Physical hearing) Apar Industries Ltd. DCIT, CC – 6(1), Mumbai Apar House, Corporate Park, Vs 445/Kautilya Bhavan, C-41 to C-43, Building No. 5, Sion Trombay road, G Block, Bandra Kurla Complex, Chembur, Mumbai – 400071. Bandra (East), Mumbai – 400051. [PAN: AAACG1840M] Appellant / Revenue Respondent / Assessee ACIT- Mumbai M.K. Road, Mumbai – 400020. No. 5, Sion Trombay Road, Chembur, Mumbai – 400071. [PAN: AAACG1840M] Appellant / Revenue Respondent / Assessee

Assessee by Shri Vijay Mehta, CA Revenue by Shri Surendra Mohan, Sr. DR Date of Institution 18.12.2025 Date of hearing 29.04.2026 Date of pronouncement 03.06.2026

Order under section 254(1) of Income Tax Act

PER PAWAN SINGH, JUDICIAL MEMBER:

1.

These cross appeals by both the parties are directed against the order of ld.

CIT(A) – 54, Mumbai dated 08.12.2025 for Assessment Year (A.Y.) 2016-17. The assessee in its appeal has raised following grounds of appeal:

"

1.

Disallowance of deduction u/

The order continues below.

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