ACIT, CIRCLE-9(2), NEW DELHI vs. FORTIS HEALTH MANAGEMENT LTD., NEW DELHI

(A) This appeal by Revenue is filed against the order of Learned Commissioner of Income Tax (Appeals)- 34, New Delhi, [“Ld. CIT(A)”, for short], dated 27.03.2018 for Assessment Year 2013-14. Grounds taken in this appeal of Revenue are as under:

“1. Ld. Commissioner of Income-tax (Appeals) erred in law and on the facts of the case in deleting the addition of Rs. 2,67,25,327/- made by the AO on account of disallowance u/s 14A of Income Tax Act read with Rule 8D.

ITA No.- 4147/Del/2018 Fortis Health Management Ltd. 2. The appellant craves leave to modify, add, or forego any ground(s) of appeal at any time before or during the hearing of this appeal.”

(B) The only issue in dispute in this appeal is addition on account of the disallowance of Rs. 2,67,25,327/- made by the Assessing Officer under Rule 8D of Income Tax Rules (“IT Rules”, for short) read with section 14A of Income Tax Act (“IT Act”, for short). In the course of appellate proceedings in Income Tax Appellate Tribunal (“ITAT”, for short); the assessee filed copies of orders passed in the assessee’s own case for AY 2012-13; including order dated 10/09/2015 passed by Learned CIT(A), order dated 05/09/2017 passed by Co-ordinate Bench of ITAT, Delhi in and order dated 11/02/2019 passed by Hon’ble Delhi High Court in ITA No. 139/2019 & CM Appeal 6354/2019. In all the aforesaid three orders dated 10/09/2015, 05/09/2017 and 11/02/2019 the issue regarding disallowance u/r 8D of IT Rules read with section 14A of IT Act was decided against Revenue and in favour of the assessee, thereby deleting the addition made by the AO on account of disallowance U/R 8D of IT Rules read with section 14A of IT Act. At the time of hearing before us, both sides have agreed that the issue in dispute in the present appeal is covered in favour of assessee and against Revenue by aforesaid orders dated 05/09/2017 and 11/02/2019. Neither side has brought any distinguishing materials for AY 2013-14 to which this appeal pertains to our notice as compared with AY 2012-13; to which aforesaid order dated 05/09/2017 and 11/02/2019, pertain. In view of the foregoing, respectfully following the aforesaid orders dated 11/02/2019, and 05/09/2017 passed respectively by Hon’ble Delhi High Court and by Co-ordinate Bench of ITAT, Delhi; the issue in dispute in this appeal is ITA No.- 4147/Del/2018 Fortis Health Management Ltd. decided in favour of the assessee and against Revenue. Accordingly, we set aside the order of Ld. CIT(A) and direct the Assessing Officer to delete the aforesaid addition of Rs. 2,67,25,327/-.

(C) Assessee’s appeal is allowed for statistical purposes.

Order was already pronounced in open court on 17/02/2021 after conclusion of virtual hearing.