PTC INDIA LIMITED,NEW DELHI vs. DCIT, CIRCLE- 19 (1), DELHI

ITA 1186/DEL/2024Status: HeardITAT Delhi07 January 2026AY 2020-211 pages
AI SummaryN/A

What did the Tribunal hold?

The Tribunal noted that the issue of Section 14A disallowance was recurring and reiterated past remand directions for re-computation. For the surcharge issue, the Tribunal held that surcharge on delayed payments, if not paid or recovered and is disputable, is not taxable as it does not represent real income, even if an entry is made in books. The Tribunal followed previous decisions, including High Court judgments, and directed the Assessing Officer to delete the additions but consider the claim for taxability when surcharge is realized and offered as income.

What were the facts?

The assessee's appeal challenged the disallowance under Section 14A read with Rule 8D. The Revenue's appeal challenged the deletion of additions made on account of surcharge on delayed payments from debtors. Both parties agreed that the issue of Section 14A disallowance was recurring, and a prior order directed re-computation. The Revenue's appeal concerning surcharge was based on the Assessing Officer's view that it was taxable as income when levied, irrespective of payment. The assessee contended it was not taxable until realized.

What were the issues?

Whether the disallowance under Section 14A read with Rule 8D is sustainable, and whether surcharge on delayed payments, not yet realized, is taxable as income.

Which sections of the Income-tax Act were involved?

Section 14A,Section 143(3),Section 250,Section 229 ITR 383 (SC)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘E NEW DELHI

Before: SHRI SATBEER SINGH GODARAAND

For Appellant: Adv. Sh. Sumit Lalchandani, Adv, Ms. Ananya Kapoor, Adv
For Respondent: Ms. Amish S. Gupt, CIT(DR)
Hearing: 07.01.2026Pronounced: 07.01.2026

Heard together (2 matters)

ITA Nos.1186/Del/2024
ITA Nos.2858/Del/2024

Read from the judgment's own cause title. This page is filed under one of them.

PER SATBEER SINGH GODARA, JM These assessee's and Revenue's cross appeals ITA Nos.1186/Del/2024 and 2858/Del/2024 for assessment year 2020-21, arise against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC

The order continues below.

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