2020 (11) TMI 952

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s been preferred by the assessee. The subject matter of the appeal pertains to the Assessment Year 2010-11. The appeal was admitted by a Bench of this Court vide order 07.11.2017 to consider the following substantial questions of law: i. Whether on the facts and in the circumstances of the case and having regard to the true meaning of 'penalty' and 'compounding fee' and the provisions of the Corporation Act, especially those relating to levy and quantification of penalty and compounding fee as the case may be the sum of Rs. 56,45,800/- or any part of it is allowable as a deduction while computing the income under the Income Tax Act? ii. Whether on the facts and in the circumstances of the case, on a true an....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... However, it is pointed out that against the aforesaid order, special leave petition has been filed before the Supreme Court which is pending consideration and the Assessing Officer be directed to decide the issue involved in the first substantial question of law after the decision of the Supreme Court in the special leave petition. 5. With regard to the second substantial question of law, it is submitted that the Assessing Officer has disallowed proportionate interest expenditure and indirect expenditure under Section 14A of the Act read with Rule 8D(2)(iii) of the Income Tax Rules. The Tribunal has upheld disallowance of administrative expenses in respect of earning non-taxable income. It is further pointed out that it is the case of t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ittedly, the first substantial question of law has been answered against the assessee by a Bench of this Court vide order dated 08.10.2013 passed in ITA No.302/2013. It is also not in dispute that against the aforesaid order, an appeal has been filed which is pending before the Supreme Court. Therefore, in the facts and circumstances of the case, we deem it appropriate to direct the Assessing Officer to give effect to his order with regard to the issue involved in the first substantial question of law, after decision of the Supreme Court in the special leave petition which is pending before the Supreme Court against the decision of this Court. Accordingly, the first substantial question of law is answered. Sofar as the second substantial qu....