Revenue's Appeals Dismissed for Low Tax Impact, CIT(A) Decision Upheld, Disallowances Deleted, Cross-Objections Dismissed

The appeals filed by the revenue against the CIT(A)'s order were dismissed as the tax effect involved was less than Rs. 20,00,000, rendering them not maintainable as per CBDT circular No. 03/2018. Disallowances made under section 14A r.w.Rule 8D of I.T.Rules for A.Ys 2013-14 to 2015-16 were deleted by the CIT(A) and upheld by the Tribunal, as no exempt income was earned by the assessee during those years. The assessee's cross objections for A.Y. 2011-12 to 2015-16 were dismissed due to a delay of 88 days without a condonation petition.

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Issues:
1. Maintainability of appeals due to tax effect less than Rs. 20,00,000
2. Disallowance made under section 14A r.w.Rule 8D of I.T.Rules

Issue 1: Maintainability of appeals due to tax effect less than Rs. 20,00,000
The appeals were filed by the revenue against the CIT(A)'s order. The Ld.AR argued that the tax effect involved in the appeals was less than Rs. 20,00,000, making them not maintainable. Both parties were heard, and it was held that since the tax effect was below the specified amount as per CBDT circular No. 03/2018, the appeals were not maintainable and were dismissed.

Issue 2: Disallowance made under section 14A r.w.Rule 8D of I.T.Rules
The AO disallowed certain amounts under section 14A r.w.Rule 8D of I.T.Rules for the A.Ys 2013-14 to 2015-16 due to investments made by the assessee resulting in exempt income. The CIT(A) found that no exempt income was earned by the assessee during those years and deleted the additions based on tribunal decisions. The Tribunal noted that the AO made disallowances related to exempt income, but since no exempt income was earned, the additions were deleted by the CIT(A) following judicial views. The Tribunal upheld the CIT(A)'s decision based on the judicial precedents and dismissed the revenue's appeals for the A.Ys 2013-14 to 2015-16.

Cross Objections:
The assessee filed cross objections for A.Y. 2011-12 to 2015-16 with a delay of 88 days and did not file a condonation petition for the delay. The cross objections were dismissed in limine. Consequently, both the revenue's appeals and the assessee's cross objections were dismissed.

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