Court grants condonation of delay in appeal filing, upholds decision on exempt income disallowance under Section 14A.

The court allowed the condonation of delay in filing and re-filing the appeal, as the respondent did not oppose the appellant's requests. Regarding the disallowance of exempt income under Section 14A of the Act, the Tribunal's decision to delete the disallowance was upheld, citing previous court judgments and the Supreme Court's dismissal of a special leave petition. As no substantial question of law arose, the appeal was closed, with pending special leave petitions against other judgments awaiting Supreme Court adjudication.

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Issues:
- Condonation of delay in filing and re-filing the appeal
- Disallowance of exempt income under Section 14A of the Act

Condonation of Delay:
The applications were filed by the appellant/revenue seeking condonation of a 105-day delay in filing and a 125-day delay in re-filing the appeal. The respondent/assessee, represented by Mr. M.P. Rastogi, did not oppose the prayers made in the applications. Consequently, the prayers for condonation of delay were allowed, and the applications were disposed of accordingly.

Disallowance of Exempt Income:
The appeal pertained to Assessment Year 2014-2015 and aimed to challenge the order passed by the Income Tax Appellate Tribunal regarding the deletion of disallowance amounting to Rs.3,12,87,693. The Tribunal held that the disallowance under Section 14A of the Act was not sustainable as the respondent/assessee had not made any claim regarding exempt income. The issue was noted to be covered by previous judgments of the court and the Supreme Court's dismissal of a special leave petition. As no substantial question of law arose for consideration, the appeal was closed. It was highlighted that special leave petitions against other judgments were pending adjudication by the Supreme Court.

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