CIT vs. KRISHAK BHARTI COOPERATIVE LTD

IN THE HIGH COURT OF DELHI AT NEW DELHI . . . . . ITA 26/2012 . . . CIT ..... Appellant . Through Mr. Kamal Sawhney, Sr. Standing Counsel. . . . versus . . . KRISHAK BHARTI COOPERATIVE LTD ..... Respondent . Through . . . CORAM: . HON'BLE MR. JUSTICE SANJIV KHANNA . HON'BLE MR. JUSTICE R.V.EASWAR . . . O R D E R . 19.01.2012 . . . Heard. . . . On the question of interpretation of Section 14A of the Income Tax Act, 1961 and whether the interest income exempt under Section 80P is covered and can be taken into account for disallowance under Section 14A, the following substantial question of law is framed:- . ?(i) Whether the Income Tax Appellate Tribunal was correct in law in holding that no disallowance can be made against income which is not specifically exempt under the Act? . (ii) Whether the Income Tax Appellate Tribunal was correct in distinguishing between deduction and exemption, which does not find any support in the language of Section 14A?? . . . With regard to insurance premium, in ITA 444/2011, the High Court had refused to admit the said appeal under Section 260A of the Act. Accordingly on the said question, the present appeal is not entertained. . The third issue raised by the Revenue in the present appeal pertains to loss sustained by the respondent-assessee. The Assessing Officer had held that entries in the books of accounts during the relevant previous year was not made and did not form part of the audit report. The claim was made before the Assessing Officer. The findings recorded by the tribunal are that the respondent-assessee, in fact, had suffered loss during the relevant previous year. Insurance claim for the said loss was received and disclosed by the assessee as income during the relevant previous year. The tribunal, accordingly, confirmed the order of the CIT (Appeals), allowing the said loss. It is obvious that there was an error, which was corrected by the assessee and the appellate authorities have accepted the plea of the respondent-assessee. It is not disputed on merits that the loss was incurred. In view of the aforesaid we are not inclined to admit the present appeal on third ground. . Filing of printed paper books is dispensed with. However, parties are given liberty to file documents/material, which were filed before the authorities/tribunal within 12 weeks. The period of 12 weeks will begin from the date notice is received by the respondent-assessee. . List in the category of ?Regular Matters?, along with ITA 1206/2011 and other connected matters. . . . . . SANJIV KHANNA, J. . . . . . . . R.V.EASWAR, J. . JANUARY 19, 2012 . NA . . . $ 01 .