ACIT,CIRCLE-3, NAINITAL vs. THE NAINITAL BANK LTD, NAINITAL

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ITA 5017/DEL/2017Status: DisposedITAT Delhi13 July 2021AY 2010-112 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal affirmed the CIT(A)'s decision to delete the addition, relying on previous decisions in the assessee's own case and the assessee's strong financial position with sufficient own funds.

What were the facts?

The assessee made investments in securities and mutual funds, and offered a disallowance under Section 14A. The AO made a further disallowance, which was deleted by the CIT(A).

What were the issues?

Whether the disallowance made by the AO under Section 14A was justified, considering the assessee's own disallowance and financial position.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DEHRADUN BENCH, DEHRADUN

Before: Sh. Amit ShuklaDr. B. R. R. Kumar

Hearing: 13.07.2021Pronounced: 13.07.2021

Per Dr. B. R. R. Kumar, Accountant Member:

1.

The present appeal has been filed by the revenue against the order of ld. CIT (A), Haldwani dated 16.05.2017.

Addition u/s 14A:

2.

During the hearing, the assessee has made investment of Rs.706,65,02,000/- in various securities/shares and Rs.82,10,60,336/- in mutual funds & other tax free bonds. The assessee has made disallowance of Rs.42,19,826/- u/s 14A of the Income Tax Act, 1961 being expenses relatable to the income not includible in the total income as per the computation of total income. The AO made further disallowance of Rs.4,14,60,879/-.

Nainital Bank Ltd.

3.

The ld. CIT (A) deleted the addition based on the decision of the Tribunal in the assessee’s own case for the assessment years 2003-04, 2004-05 and 2005-06 in & 4987/Del/2007 and in ITA No. 260/Del/2007. Further, in ITA No. 3510/Del/2008 for the assessment year 2005-06, the Co- ordinate Bench of the Tribunal after going through the financial position of the assessee gave a categorical finding that the assessee has got sufficient own funds in the form of share capital, Reserves & Surplus. The financial position has not been disputed by the revenue authorities during the instant year.

4.

Hence, in the absence of any change in the factual and legal position of the assessee, we affirm the decision of the ld. CIT (A) which was based on the considered pronouncement of the Co-ordinate Bench of ITAT.

5.

In the result, the appeal of the revenue is dismissed. Order Pronounced in the Open Court on 13/07/2021.

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