2023 (3) TMI 396

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.... revenue arising out of rectification proceeding. These appeals arise out of three separate orders of learned Commissioner of Income Tax (Appeals), New Delhi. ITA No. 2914/Del/2015 (assessee's appeal A.Y. 2009-10) 2. At the outset, learned Counsel appearing for the assessee, on instructions submitted that the main ground on the issue of deduction claimed towards leave encashment and the additional ground raised claiming deduction of Education Cess are not to be pressed. 3. In view of the submissions of learned Counsel, these grounds are dismissed as not pressed. 4. Thus, the only surviving issue in assessee's appeal as raised in the additional ground dated 15.01.2020 relates to the issue of disallowance of expenditure under sect....

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....support, he relied upon the following decisions: • CIT Vs. Caraf Builders & Constructions (P.) Ltd.: 101 Taxmann.com 167 (Del.) • Joint Investments Pvt. Ltd. Vs. CIT : 371 ITR 694 (Del.) 7. The learned Departmental Representative relied upon the observations of the Assessing Officer. 8. Having considered rival submissions and perused material on record, at the outset, we must observe that the additional ground raised by the assessee does not require fresh investigation into facts. Therefore, we admit the additional ground for adjudication. 9. The issue arising for consideration is, whether disallowance u/s 14A read with Rule 8D can exceed the quantum of exempt income earned in a particular assessment year.....

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....on these payments under Section 194-I of the Act, the Assessing Officer made proportionate disallowance under section 40(a)(ia) of the Act. Assessee contested the aforesaid disallowance before learned Commissioner (Appeals). 13. While deciding the issue in appeal, learned Commissioner (Appeals) agreed with the assessee that the appropriate provision under which tax was required to be deducted is section 194C. Further, learned Commissioner (Appeals) held that Section 40(a)(ia) can be invoked in a case where no deduction of tax has been made but not in a case where there is short deduction of tax. Accordingly, he deleted the disallowance made by the Assessing Officer. 14. We have considered rival submissions and perused material on reco....