The Pr. Commissioner of Income-tax -4 v. Indiabulls Financial Services Ltd
[Citation -2017-LL-0502-10]
| Citation | 2017-LL-0502-10 |
|---|---|
| Appellant Name | The Pr. Commissioner of Income-tax -4 |
| Respondent Name | Indiabulls Financial Services Ltd. |
| Court | HIGH COURT OF DELHI AT NEW DELHI |
| Relevant Act | Income-tax |
| Date of Order | 02/05/2017 |
| Assessment Year | 2008-09 |
| Judgment | View Judgment |
| Keyword Tags | proportionate interest • interest expenditure • rule of consistency • disallowance of interest • exempted income • expenditure incurred in relation to income not includible in total income |
| Bot Summary: | The short question urged by the Revenue in this appeal under Section 260A of the Income Tax Act, 1961 against the order dated 13th January, 2016, passed by the Income Tax Appellate Tribunal in ITA No. 4192/DEL/2012 for the Assessment Year 2008-09 is whether the ITAT erred in the circumstances of the case in deleting the addition of proportionate interest expenditure u/s 14A r/w Rule 8D(2)(ii) of the Act 2. It is pointed out by learned counsel for the Assessee at the outset that in the impugned order, the ITAT has followed its order for the AY 2009-10 in the Assessee s own case. He points out that for the AYs 2010- ITA 546/2016 Page 1 of 2 11, 2011-12 and 2012-13, the Assessment Officer did not disallow the interest expenditure as claimed by the Assessee. In other words, the Assessee s contention that the interest expenditure claimed was not relatable to the exempt income was accepted by the AO himself. The said orders of the AO for those AYs as far as the said issue is concerned have attained finality. Applying the rule of consistency as reiterated by the Supreme Court in Commissioner of Income Tax v. Excel Industries Ltd. 358 ITR 295, the Court declines to frame a question of law. |