DHARAMPAL PREMCHAND LTD.,DELHI vs. DCIT, CENTRAL CIRCLE-29, NEW DELHI

ITA 4300/DEL/2018Status: DisposedITAT Delhi31 March 2023AY 2013-1419 pages
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What did the Tribunal hold?

The Tribunal held that for Section 14A, the availability of interest-free funds exceeding investments needs verification. Regarding Section 10AA, common expenses and interest allocation to the exempt unit require further examination by the AO.

What were the facts?

The assessee, engaged in manufacturing chewing tobacco, filed its return declaring a loss. The Assessing Officer (AO) made additions, and the Commissioner (Appeals) granted partial relief. The assessee appealed against these orders.

What were the issues?

Whether disallowance under Section 14A is justified when interest-free funds exceed investments, and how common expenses and interest should be allocated to an exempt unit under Section 10AA.

Which sections of the Income-tax Act were involved?

Section 14A,Section 10AA

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, DELHI BENCH ‘B’, NEW DELHI

Before: SH. ANIL CHATURVEDI & SH. NARENDER KUMAR CHOUDHARY

Consolidated Appeals (3)

ITA 4300/Del/2018AY 2013-14
ITA 2907/Del/2018AY 2015-16
ITA 82/Del/2022AY 2017-18
For Appellant: Shri G. N. Gupta, Adv
For Respondent: Shri Harpal Singh Kharab, Sr. D.R
Hearing: 21.03.2023Pronounced: 31.03.2023

PER ANIL CHATURVEDI, AM :

These four appeals filed by the assessee are directed against the order dated 27.04.2018, 28.02.2018, 21.05.2019 & 21.12.2021 of the Commissioner of Income Tax (Appeals) – 31, 30 New Delhi relating to Assessment Years 2013-14, 2015-16, 2016-17 & 2017- 18 respectively.

2.

Since the issue in all the four appeals are common, therefore we have clubbed all the appeals together for the sake of brevity and convenience, however, we are taking ITA No.4300/Del/2018 for A.Y. 2013-14 as a lead case.

3.

The relevant facts as

The order continues below.

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