THE PR COMMISSIONER OF INCOME TAX-4, NEW DELHI vs. HCL COMNET SYSTEM AND SERVICE LTD.

$~83 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 208/2024

THE PR COMMISSIONER OF INCOME TAX-4, NEW

DELHI

..... Appellant Through: Mr. Shlok Chandra, SSC along with Ms. Priya Sarkar and Ms. Madhavi Shukla, JSCs.

versus

HCL COMNET SYSTEM AND SERVICE LTD. ..... Respondent

Through: Mr. Aditya Vohra, Adv.

CORAM:

HON'BLE MR. JUSTICE YASHWANT VARMA

HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR

KAURAV

04.04.2024 O R D E R

CM APPL 20015/2024 (delay in filing) & CM APPL 20016/2024 (Delay in refilling) Bearing in the mind the disclosures made, the delay of 06 days in filing the appeal and the delay of 96 days in re-filing the appeal is condoned. The applications shall stand disposed of. 1. The Principal Commissioner of Income Tax impugns the order of the Income Tax Appellate Tribunal [‘ITAT’] dated 07 June 2023 and proposes the following questions of law for our consideration:- ITA 208/2024 “A. Whether on the facts and circumstances of the case and in law, the Ld. ITAT erred in deleting the addition of Rs.1,38,87,135/- u/s 14A of the Act? B. Whether on the facts and circumstances of the case and in law, the Ld. ITAT erred in overlooking the CBDT Circular No. 512014 dated 11.02.2014 and introduction in the Explanation of the Finance Act This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/03/2026 at 13:31:54

2022 holding that the disallowance u/s 14A which clarifies that disallowance u/s 14A is to be made even when the assessee has not earned any exempt income during the year? C. Whether on the facts and circumstances of the case and in law, the Ld. ITAT erred in deleting the additions made by the AO on capitalisation of license fee of Rs. 2,26,50,074/-?”