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Facts
The Revenue filed two appeals against the Ld. CIT(A)'s orders for AY 2013-14 and 2014-15. The appeals challenged the CIT(A)'s decision to restrict the disallowance under Section 14A to actual exempt income and to fully allow the deduction under Section 80JJA for processing bio-degradable waste. The CIT(A)'s decisions were based on the assessee's own prior cases and High Court judgments.
Held
The Tribunal dismissed both appeals filed by the Revenue. It affirmed the CIT(A)'s decisions for both Section 14A and Section 80JJA, noting that these issues were consistently decided in the assessee's favor in earlier assessment years by both the CIT(A) and the ITAT, and no distinguishing facts were presented for the current years.
Key Issues
Whether disallowance under Section 14A should be limited to the actual exempt income earned, and whether the deduction under Section 80JJA should be allowed for processing bio-degradable waste, considering consistent prior years' decisions for the same assessee.
Sections Cited
250, 14A, 80JJA, Rule 8D(2)(ii), Rule 8D(2)(iii)
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Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD
Before: DR. B.R.R. KUMAR, VICE-SHRI SIDDHARTHA NAUTIYAL
IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER & 403/Ahd/2025 (Assessment Years: 2013-2014 & 2014-15) The Deputy Commissioner Anil Limited, Vs. of Income Tax, Anil Starch Premises, Circle-1(1)(1), Anil Road, Naroda, Ahmedabad. Ahmedabad, Gujarat - 380025 [PAN :AABCA3154 H] (Appellant) .. (Respondent) Appellant by : Shri R P Rastogi, CIT-DR Respondent by: None Date of Hearing 12.08.2025 Date of Pronouncement 17.09.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:-
These two appeals have been filed by the Revenue against the separate orders of even dated 23.12.2025 passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (‘Ld. CIT’ in short), under Section 250 of the Income-tax Act, 1961 (‘the Act’ in short) relating to the Assessment Years 2013-14 & 2014-15.
As common issues are involved in both the years under consideration, these appeals were heard together and are being disposed of by this consolidated order. For the sake of convenience, we shall refer to the grounds raised
in A.Y. 2013-14, which shall apply mutatis mutandis to A.Y. 2014-15. for A.Y 2013-14 Ground No. 1: Disallowance under Section 14A
3. The Ld. CIT(A) observed that the disallowance u/s 14A, as computed by the Assessing Officer at Rs. 1,06,06,790/-, included Rs. 98,94,415/- under Rule ITA Nos. 402-403/Ahd/2025 DCIT Vs Anil Limited Asst. Years : 2013-14- to 2014-15 - 2– 8D(2)(ii) and Rs. 7,12,375/- under Rule 8D(2)(iii). However, relying on the judgment of the Hon’ble Gujarat High Court in the case of CIT vs. Corrtech Energy Ltd. [(2014) 372 ITR 97 (Guj)] and the decision of the Coordinate Bench of ITAT Ahmedabad in assessee’s own case for A.Y. 2010-11, the Ld. CIT(A) restricted the disallowance to Rs. 2,84,678/-, being the actual exempt income earned. Since the matter stands adjudicated in assessee's own case for A.Y. 2010-11, the Co- ordinate Bench of the ITAT, Ahmedabad, in ITA No. 2174/Ahd/2016 vide order dated 19.05.2023, wherein the Tribunal upheld the restriction of disallowance to the extent of actual exempt income and since the decision of the Ld. CIT(A) is based on the order of the Tribunal, we decline to interfere with the order of the Ld. CIT(A).
This ground of appeal of the Revenue is, therefore, dismissed.
Ground No. 2: Disallowance of Deduction u/s 80JJA
The Assessing Officer disallowed the assessee’s claim of deduction u/s 80JJA amounting to Rs. 23,54,30,842/- on the ground that the assessee failed to substantiate the actual receipt and processing of bio-degradable waste. The Ld. CIT(A) allowed the claim in full, noting that in assessee’s own case for A.Y. 2010- 11, 2011-12, and 2012-13, the claim was allowed by the Ld. CIT(A), which was further confirmed by the ITAT, Ahmedabad in & 2175/Ahd/2016 and ITA No. 858/Ahd/2017 vide order dated 19.05.2023. It is not in dispute that in assessee’s own case for earlier years, on identical facts, the deduction u/s 80JJA was allowed by the Ld. CIT(A), and such decisions were upheld by the ITAT. Since no distinguishing facts have been brought to our notice for the year under consideration, we find no reason to deviate from the view taken by Ld. CIT(A).
Accordingly, this ground of appeal of the Revenue is also dismissed.
ITA Nos. 402-403/Ahd/2025 DCIT Vs Anil Limited Asst. Years : 2013-14- to 2014-15 - 3– for A.Y. 2014-15
Since the facts and issues in A.Y. 2014-15 are identical to those discussed above in A.Y. 2013-14, our findings and conclusions rendered hereinabove shall apply mutatis mutandis to A.Y. 2014-15 as well.
In the result, both the appeals filed by the Revenue are dismissed.