Assessment Year: 2013-14
This case involves an appeal by United Leasing & Industries Ltd. against the order passed by the CIT(A)-9, New Delhi, concerning the Assessment Year 2013-14. The dispute centers on the suo moto disallowance made under Section 14A of the Income Tax Act, which the appellant sought to reduce or withdraw based on judicial precedents.
The primary issue was the rejection of the appellant’s request to reconsider a disallowance of Rs. 8,50,094 made under Section 14A during the filing of the return of income. The appellant argued that significant judicial decisions, including those from the Delhi High Court in the cases of CIT vs. Holcim India Pvt. Ltd. and Cheminvest Ltd. v. CIT, supported their position but were overlooked by the Assessing Officer and the CIT(A).
During the proceedings, the counsel for the assessee presented all necessary documentary evidence and argued that the earlier authorities had not adequately considered this evidence. The Departmental Representative did not strongly oppose the assessee’s request for a remand. After reviewing the submissions and the legal precedents cited, the Judicial Member, Shri H.S. Sidhu, decided to set aside the contentious issues back to the Assessing Officer for re-assessment in accordance with the law and the cited judicial decisions.
The Tribunal allowed the appeal for statistical purposes, enabling a re-evaluation of the disallowance under Section 14A. This case highlights the importance of judicial consistency and the need for tax authorities to consider relevant legal precedents when making assessments.
The order was pronounced in open court, reflecting the tribunal’s commitment to transparency and adherence to judicial precedents in tax litigation.
ITA No. 1004/Del/2019 – United Leasing & Industries Ltd. vs. ITO
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