M/S. GOEL BROTHERS,PUNE vs. DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE - 7, PUNE

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ITA 501/PUN/2019Status: DisposedITAT Pune21 July 2022AY 2013-142 pages
AI SummaryRemanded

What did the Tribunal hold?

The tribunal found merit in the assessee's argument that the disallowance under Section 14A was excessive concerning exempt income. The issue was remanded to the AO for fresh verification.

What were the facts?

The assessee's appeal was filed with a delay of 365 days, which was condoned by the tribunal. The primary issue was a disallowance made by the AO under Section 14A read with Rule 8D(2)(iii).

What were the issues?

Whether the disallowance made under Section 14A read with Rule 8D(2)(iii) was excessive in relation to the exempt income earned by the assessee.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, PUNE

Before: SHRI INTURI RAMA RAO & SHRI S.S. VISWANETHRA RAVI

For Appellant: Shri Krishna V. Gujarathi
For Respondent: Shri S.P. Walimbe

आदेश / ORDER

PER S.S. VISWANETHRA RAVI, JM :

1.

This appeal by the assessee against the order dated 22-11-2017 passed by the Commissioner of Income Tax (Appeals)-5, Pune [‘CIT(A)’] for assessment year 2013-14.

2.

We find this appeal was filed with a delay of 365 days. To condone the said delay, the assessee filed notarized affidavit dated 29-03-2019 explaining the reasons for delay. On perusal of the same upon hearing both the parties, the delay of 365 days is condoned.

3.

At the outset, the ld. AR submitted that the AO made disallowance of Rs.24,35,880/- u/s. 14A r.w. Rule 8D(2)(iii). The contention of ld. AR is that the disallowance so made by the AO u/s. 14A r.w. Rule 8D(2)(iii) is excessive in respect of exempt income earned. We find force in the arguments of ld. AR. Therefore, we deem it proper to remand the issue to the file of AO for its fresh verification for making disallowance against those investments yielded exempt income. The assessee is liberty to file evidences, if any, in support of its claim. Thus, the ground raised by the assessee is allowed for statistical purpose.

4.

In the result, the appeal of assessee is allowed for statistical purpose.

Order pronounced in the open court on 21st July, 2022.

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