Tribunal Allows Delayed Appeals Due to COVID-19; Modifies Disallowance of Expenses; Dismisses Unpressed Appeal.

The tribunal condoned a 101-day delay in filing appeals due to COVID-19 restrictions, admitting them for adjudication. For ITA Nos. 142 & 143/Del/2021 (A.Yrs. 2011-12 & 2012-13), the tribunal directed the deletion of disallowance under Rule 8D(2)(ii) due to sufficient interest-free funds and no current investments. It also instructed the Assessing Officer to consider only investments yielding exempt income under Rule 8D(2)(iii). The appeals were partly allowed. ITA No. 144/Del/2021 (A.Y. 2013-14) was dismissed as the grounds were not pressed.

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Issues Involved:
The appeal involved the delay in filing, disallowance of expenditure under section 14A of the Income-tax Act, 1961 read with Rule 8D for assessment years 2011-12, 2012-13, and 2013-14.

Delay in Filing the Appeals:
The appellant sought condonation of a 101-day delay in filing the appeals due to COVID-19 restrictions. The delay was condoned by the tribunal, and the appeals were admitted for adjudication.

ITA Nos. 142 & 143/Del/2021 (A.Yrs. 2011-12 & 2012-13):
The issue revolved around the disallowance of expenditure under section 14A of the Income-tax Act, 1961 read with Rule 8D. The Assessing Officer had disallowed significant amounts of expenditure attributable to earning exempt income, which the appellant contested before the first appellate authority.

Upon hearing both parties, it was noted that there were no current investments in the relevant assessment years, and the appellant had sufficient interest-free funds available. Consequently, the tribunal directed the Assessing Officer to delete the disallowance made under Rule 8D(2)(ii) for both assessment years.

Regarding the disallowance under Rule 8D(2)(iii), the tribunal directed the Assessing Officer to consider only those investments that yielded exempt income during the relevant assessment years for computing the average value of investments. Grounds were partly allowed, and certain grounds were dismissed as not pressed.

ITA No. 144/Del/2021 (A.Y. 2013-14):
In this appeal, the appellant did not press the grounds raised, leading to the dismissal of the appeal. Consequently, ITA Nos. 142 & 143/Del/2021 were partly allowed, while ITA No. 144/Del/2021 was dismissed.

In conclusion, the tribunal addressed the delay in filing the appeals and the disallowance of expenditure under section 14A of the Income-tax Act, 1961 read with Rule 8D for the assessment years 2011-12, 2012-13, and 2013-14. The tribunal allowed certain grounds, dismissed others as not pressed, and ultimately partly allowed the appeals.

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