THE COMMISSIONER OF INCOME TAX -LTU vs. MAWANA SUGAR LIMITED

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ITA/1299/2018HC DelhiDLHC01377520201820 November 2018Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE ANUP JAIRAM BHAMBHANI1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court of Delhi, in its order dated November 20, 2018, decided not to interfere with the impugned order passed by the Tribunal. The Court noted that the issue raised in the appeal pertained to disallowance under Section 14A of the Income Tax Act, 1961. The Tribunal had remanded the matter to the Assessing Officer to ascertain if the assessee had earned any exempt income that was not taxable. The High Court found that this direction was covered by its own prior decision in the case of Pr. Commissioner of Income Tax-6 v. Mcdonalds India Pvt. Ltd., ITA No. 725/2018, decided on October 22, 2018. Therefore, the appeal filed by the Revenue was dismissed. No issue was expressly left undecided.

What were the facts?

The Revenue, represented by the Commissioner of Income Tax – LTU, filed an appeal against an order passed by the Income Tax Appellate Tribunal (Tribunal) dated May 28, 2018. The assessment year(s) are not specified. The Tribunal's order had remanded the issue of disallowance under Section 14A of the Income Tax Act, 1961, back to the Assessing Officer. The Assessing Officer was directed to first determine whether the respondent-assessee, Mawana Sugar Limited, had earned any exempt income that was not taxable. The High Court of Delhi was considering this appeal.

What were the issues?

1. Whether the Tribunal was correct in remanding the issue of disallowance under Section 14A of the Income Tax Act, 1961, to the Assessing Officer to first examine if the assessee had earned any exempt income not taxable. Assessee's Contention: The judgment does not record any specific contentions made by the assessee. The assessee is represented by Mr. Mayank Nagi, Advocate. Revenue's Contention: The Revenue, represented by Mr. Ruchir Bhatia, Advocate, has appealed the Tribunal's order. The judgment does not detail the specific arguments made by the Revenue against the remand order, but it is implied they sought to challenge the Tribunal's decision to remand the issue.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

$~50 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 1299/2018 & CM APPL. 48192/2018

THE COMMISSIONER OF INCOME TAX –LTU..... Appellant

Through Mr.Ruchir Bhatia, Advocate.

versus

MAWANA SUGAR LIMITED

..... Respondent

Through Mr.Mayank Nagi, Advocate.

CORAM: HON'BLE MR. JUSTICE SANJIV KHANNA HON'BLE MR. JUSTICE ANUP JAIRAM BHAMBHANI

O R D E R %

20.11.2018

The issue raised in the present appeal relates to disallowance under Section 14A of the Income Tax Act, 1961 ('Act' for short). The impugned order passed by the Income Tax Appellate Tribunal (‘Tribunal’ for short) dated 28.05.2018 has remanded the issue of disallowance under Section 14A of the Act to the Assessing Officer to first examine as to whether the respondent-assesee had earned any exempted income which was not taxable. In view of the direction given by the Tribunal, we are not inclined to interfere with the impugned order as the issue is covered by the decision of this court in Pr. Commissioner of Income Tax-6 v. Mcdonalds India Pvt. Ltd., ITA No. 725/2018 decided on 22.10.2018. The appeal is accordingly dismissed.

SANJIV KHANNA, J

ANUP JAIRAM BHAMBHANI, J NOVEMBER 20, 2018/ndn

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