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Income Tax Appellate Tribunal, DELHI ‘SMC-A’
Before: SHRI N.K. BILLAIYA, ACCOUNTANTMEMBER & SHRI KULDIP SINGH
PER N.K. BILLAIYA. ACCOUNTANT MEMBER,
These two appeals by the assessee are preferred against the order of the Commissioner of Income Tax [Appeals] - 26, New Delhi dated 21.02.2014 pertaining to assessment years 2006-07 and 2009-10.
Since the first appellate authority has disposed of these appeals by a consolidated order, both these appeals were heard together and are disposed of by this common order for the sake of convenience and brevity.
In 80IC of the Income-tax Act, 1961 [hereinafter referred to as 'the Act' and in the assessee is aggrieved by the addition of Rs. 26 lakhs.
As mentioned elsewhere, the first appellate authority has disposed of these appeals by a common order. The order of the first appellate authority for A.Y 2008-09 was challenged before the Tribunal and the Tribunal, vide order dated 11.7.2017 in has restored the matter to the file of the Assessing Officer to decide afresh the claim of deduction u/s 80IC of the Act. The relevant finding reads as under:
"11. All these documents have neither been examined nor have been dealt by the Ld. Authorities below. Under these circumstances, we are of the considered opinion that the issue of allowability of claim of deduction u/s 80IC should be set aside to the file of the Assessing Officer who shall examine the claim of the assessee afresh after considering the various evidences and material placed by the assessee and if required he may carry out any such investigation or enquiry to examine the claim. The assessee would be at liberty to file any such documents or material to substantiate its claim for which Assessing Officer will provide proper and reasonable opportunity to ty the assessee. Accordingly, the issue of claim of deduction u/s 80IC is restored back to the file of the Assessing Officer to be decided afresh and in accordance with the law after proper examination of all the material on record.
As regards the disallowance u/s 14A, we find that the Assessing Officer has mechanically applied Rule 8b and even the Ld. CIT (Appeals) has confirmed the same without considering the mandatory provisions of law. Before us, in the grounds of appeal the assessee has taken a plea that the assessee had own sufficient capital for making the investment in mutual' funds, therefore; such disallowance cannot be made, On the issue of disallowance u/s 14A also., we are of the opinion that the matter should be restored back to the file of the Assessing Officer who shall examine the nature of accounts maintained by the assessee and also to see, whether the assessee had owned sufficient funds for making the investment from where the assessee has. received dividend income and if it is found that the assessee had surplus found then no disallowance of interest under Rule 8b (2)(ii) should be made. The assessee will cooperate with the Assessing Officer for providing all the necessary information in this regard. Accordingly, this issue is also set aside to the file of the Assessing Officer to be decided afresh and in accordance with the law.
13. In the result, the entire grounds raised by the assessee in this appeal is set aside to the file of AO and thus, the appeal of the assessee is treated as allowed for statistical purposes."
Respectfully following the findings of the co-ordinate bench, we restore the matter to the file of the Assessing Officer with a direction to decide the issue relating to the claim of deduction u/s 80IC of the Act as per the directions of the co-ordinate bench given in assessment year 2008-09.
In so far as is concerned, the facts are similar to the facts of assessment year 2006-07 [supra]. Therefore, this assessment year is also restored to the file of the Assessing Officer to be decided afresh after giving reasonable opportunity of being heard to the assessee.
In the result, the appeals filed by the assessee are allowed for statistical purposes.
The order is pronounced in the open court on 31.08.2018.