B.E.BILLIMORIA & COMPANY LIMITED,MUMBAI vs. THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-1(1)(1), MUMBAI

This appeal by the assessee is directed against order dated 29.09.2022 passed by the Ld. Commissioner of Income-tax (Appeals)-National Faceless Appeal Centre (NFAC), Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2017-18, raising following grounds: 1. The Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, has erred in confirming the disallowance of ₹ 1,26.047/- u/s 144 r.w.r 8D ignoring the B.E. Billimoria & Company Ltd. B.E. Billimoria & Company Ltd. 2 ITA No. 2788/M/2022 fact that the same is already disallowed in the Computation fact that the same is already disallowed in the Computation fact that the same is already disallowed in the Computation of Income, resulting same disallowance made twice. of Income, resulting same disallowance made twice. of Income, resulting same disallowance made twice.

Briefly stated, facts of the case are that the assessee filed Briefly stated, facts of the case are that the assessee filed Briefly stated, facts of the case are that the assessee filed return of income declaring total loss of return of income declaring total loss of ₹1,14,98,11,690/ 1,14,98,11,690/-. The return of income filed by the assessee was selected for scrutiny and return of income filed by the assessee was selected for scrutiny and return of income filed by the assessee was selected for scrutiny and disallowance u/s 14A of the Income disallowance u/s 14A of the Income-tax Act, 1961 (in short ‘the tax Act, 1961 (in short ‘the Act’) r.w.r. 8D amounting to ₹1,26,047/- and for delayed payment Act’) r.w.r. 8D amounting to and for delayed payment of ESI/PF of ₹83,06,053/ 83,06,053/- u/s 36(1)(va) of the Act was made by the va) of the Act was made by the Assessing Officer. On further appeal, the Ld. CIT(A) upheld the Assessing Officer. On further appeal, the Ld. CIT(A) upheld the Assessing Officer. On further appeal, the Ld. CIT(A) upheld the disallowance. Aggrieved, the assessee is in appeal before the disallowance. Aggrieved, the assessee is in appeal before the disallowance. Aggrieved, the assessee is in appeal before the Tribunal raising the grounds as reproduced above. Tribunal raising the grounds as reproduced above.

We have heard rival submission of the parties We have heard rival submission of the parties on the issue-in- dispute and perused the relevant material on record. As far as dispute and perused the relevant material on record. As far as dispute and perused the relevant material on record. As far as ground No. 1 of the appeal is concerned ground No. 1 of the appeal is concerned, in the ground it is in the ground it is submitted that disallowance of submitted that disallowance of ₹1,26,047/- u/s 14A r.w.r. 8D was u/s 14A r.w.r. 8D was also disallowed in the computation of the income a also disallowed in the computation of the income and therefore, it is nd therefore, it is double disallowance. Since, this is a mat double disallowance. Since, this is a matter of verification ter of verification therefore, we restore this issue to the file of the Assessing Officer for verifying we restore this issue to the file of the Assessing Officer for verifying we restore this issue to the file of the Assessing Officer for verifying

In the result, the appeal filed by the ass In the result, the appeal filed by the assessee is partly allowed essee is partly allowed for statistical purposes. for statistical purposes.