AMITA AVINASH PHADNIS,PUNE vs. INCOME-TAX OFFICER, WARD - 11(5), PUNE

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ITA 2964/PUN/2017Status: DisposedITAT Pune25 January 2019AY 2014-153 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal directed the Assessing Officer to restrict the disallowance under section 14A to the extent of the exempt income, following the Delhi High Court's ruling in DCIT Vs. Joint Investment Pvt. Ltd.

What were the facts?

The assessee's appeal was against an order under section 143(3) of the Income-tax Act. The primary issue was a disallowance made under section 14A read with Rule 8D.

What were the issues?

The key issue was the quantum of disallowance under section 14A and whether it should be restricted to the exempt income.

Which sections of the Income-tax Act were involved?

Section 14A

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Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE

For Respondent: Shri Rajesh Gawali
Hearing: 15.01.2019Pronounced: 25.01.2019

PER SUSHMA CHOWLA, JM:

The appeal filed by assessee is against the order of CIT(A), Pune-1, Pune, dated 22.09.2017 relating to assessment year 2014-15 against order passed under section 143(3) of the Income-tax Act, 1961 (in short ‘the Act’).

2.

The appeal was fixed for hearing on 06.11.2018 and thereafter it was adjourned at the request of assessee. Thereafter, the appeal was fixed for hearing on 24.12.2018 and 15.01.2019. However, none appeared on behalf of

ITA No.2964/PUN/2017 2 Amita A Phadnis

assessee nor any application was moved for adjournment and accordingly, I proceed to decide the appeal ex-parte the assessee.

3.

The only issue raised in the present appeal is against disallowance made under section 14A of the Act read with Rule 8D of the Income Tax Rules, 1962 (in short ‘the Rules’). On without prejudice basis, the assessee submitted that the disallowance be restricted to exempt income for the year under consideration in line with the ratio laid down by the Hon’ble High Court of Delhi in DCIT Vs. Joint Investment Pvt. Ltd. (2015) 372 ITR 694 (Del).

4.

The issue raised on without prejudice basis i.e. in restricting the disallowance under section 14A of the Act is squarely covered by the ratio laid down by the Hon’ble High Court of Delhi in DCIT Vs. Joint Investment Pvt. Ltd. (supra). Applying the said ratio, we direct the Assessing Officer to restrict the disallowance under section 14A of the Act to the extent of exempt income i.e. ₹ 1,52,362/-. The grounds of appeal raised by assessee are thus, partly allowed.

5.

In the result, appeal of assessee is partly allowed.

Order pronounced on this 25th day of January, 2019.

Sd/- (SUSHMA CHOWLA) न्याययक सदस्य / JUDICIAL MEMBER ऩुणे / Pune; ददनाांक Dated : 25th January, 2019. GCVSR

ITA No.2964/PUN/2017 3 Amita A Phadnis

आदेश की प्रयिलऱपप अग्रेपषि/Copy of the Order is forwarded to : 1. अऩीऱाथी / The Appellant; 2. प्रत्यथी / The Respondent; 3. आयकर आयुक्त(अऩीऱ) / The CIT(A), Pune-1, Pune; 4. The Pr.CIT-1, Pune; ववभागीय प्रतततनधध, आयकर अऩीऱीय अधधकरण, ऩुणे, एक-सदस्य 5. मामऱा / DR ‘SMC’, ITAT, Pune; गार्ड पाईऱ / Guard file. 6. आदेशािुसार/ BY ORDER, सत्यावऩत प्रतत //True Copy// वररष्ठ तनजी सधिव / Sr. Private Secretary आयकर अऩीऱीय अधधकरण ,ऩुणे / ITAT, Pune

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