2021 (3) TMI 1423

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.... the notice of this Court that in respect of the Assessment Year 2014-15, this Court has already decided the issue in ITA No.49/201.9. The Order passed in ITA No.49/2019 reads as under: 1. "The present Income-tax appeal is arising out of the order dated 31.08.2018 passed by the Income-tax Appellate Tribunal. 2. The facts of the case reveal that the assessee is a company engaged in the business of development and construction, of houses, buildings and other related activities. The assesse has filed its return of income for the Assessment Year 2014-15. During the assessment proceedings, the Assessing Officer made disallowance under Section 14A of the Income Tax Act. The assessee being aggrieved preferred an appeal before the Commissioner....

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.... was admitted by a Bench of this Court vide order dated 05.04.2016 on the following substantial question of law: "Whether, on the facts and in the circumstances of the case, the Tribunal is justified in law in deleting the disallowances made under Section 14A read with Rule 8D(2)(ii) and 8(D)(2)(iii) of the Act without appreciating the contents of Circular No.5/2014 dated 11.02.2014, which emphasized that only expenditure allowable is relatable to earning of income and therefore, the expenses which are relatable to earning of exempt income have to be considered for disallowance, irrespective of the fact whether such income has been earned during the financial year or not?" 2. Facts leading to filing of this appeal briefly stated are t....

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....(iii) to the extent of Rs. 18,71,270/- as against the original disallowance under Rule 8D(2)(iii) of Rs. 27,91,520/-. However, disallowance of Rs. 3,81,18,472/- was sustained. 3. The revenue filed an appeal against the order passed by the Commissioner of Income Tax (Appeals) before the Income Tax Appellate Tribunal (hereinafter referred to as 'the tribunal' for short) namely ITA No.168/Bang/2013, whereas the assessee filed cross-appeal before the Tribunal against the order of the Commissioner of Income Tax (Appeals) to the extent it was passed against it in ITA No.1417/Bang/2012. The Tribunal, vide its common order dated 23.06.2015, dismissed the appeal preferred by the revenue and partly allowed the appeal preferred by the assessee. Bei....

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....t situation of the case. The aforesaid aspect of the matter was even disputed by the revenue before the Tribunal. Therefore, on admitted facts, the Tribunal has set aside the disallowance of the claim under Section 14A of the Act. 6. We have considered the submissions made on both sides and have perused the record. From perusal of paragraph 6 of the communication dated 15.11.2011, it is evident that the assessee had taken a specific stand before the Assessing Officer in the assessment proceedings itself that the assessee has not earned any income which is exempted from tax. The relevant extract of paragraph 19 of the order passed by the Tribunal is reproduced below for the facility of reference: "It is not disputed that there was no d....