ITAT Rulings: Department Appeals Dismissed, Assessee's Appeals Set for Fresh Review Due to COVID-19 Impact.

The ITAT disposed of cross appeals involving the same assessee for assessment years 2011-12, 2012-13, and 2013-14. The Department's appeals were largely dismissed, with certain grounds upheld based on precedents. The assessee's appeals were allowed for statistical purposes, with issues regarding disallowance under Section 14A set aside for fresh adjudication. The decisions considered legal precedents and extraordinary circumstances, including the impact of COVID-19 lockdowns.

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Issues Involved:
- Cross appeals against separate orders of the Commissioner of Income Tax (Appeals) for assessment years 2011-12 and 2013-14.
- Common issues pertaining to the same assessee heard together and disposed of in a common order.
- Department appeal in ITA No. 1626/Kol/2018 for assessment year 2012-13.
- Assessee's appeal in ITA No. 1666/Kol/2018.
- Revenue's appeal in ITA No. 1627/Kol/2018.
- Assessee's appeal in ITA No. 1667/Kol/2018.

Analysis:
1. *Department Appeal (ITA No. 1626/Kol/2018)*:
- Ground 1 dismissed as decided in favor of revenue.
- Ground 2 upheld based on Special Bench decision.
- Ground 3 on rental income addition dismissed following previous Tribunal and High Court decisions.
- General Ground 4 resulted in the appeal's dismissal.

2. *Assessee's Appeal (ITA No. 1666/Kol/2018)*:
- All grounds related to quantification of disallowance u/s 14A.
- Proper satisfaction not recorded by AO; set aside for fresh adjudication.
- Disallowance confirmed by CIT(A) set aside for re-examination by AO.
- Appeal allowed for statistical purposes.

3. *Revenue's Appeal (ITA No. 1627/Kol/2018)*:
- Ground 1 on disallowance under Rule 8D(2)(iii) upheld based on High Court precedent.
- Ground 2 covered by Special Bench decision.
- Ground 3 identical to A.Y. 2012-13; dismissed following previous decision.
- Appeal dismissed.

4. *Assessee's Appeal (ITA No. 1667/Kol/2018)*:
- Issue on disallowance u/s 14A set aside to AO for consistent application.
- Appeal allowed for statistical purposes.

5. The judgment was pronounced after considering the impact of COVID-19 lockdown days as per a Mumbai Tribunal decision.

In conclusion, the appeals were disposed of based on specific legal grounds, including quantification of disallowance u/s 14A, application of Rule 8D, and consistency with previous decisions. The orders varied between upholding, setting aside for fresh adjudication, and allowing appeals for statistical purposes, with considerations for legal precedents and extraordinary circumstances.

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