The Pr. Commissioner of Income-tax-5 v. Liquid Investment and Trading Co. Pvt. Ltd
[Citation -2019-LL-0215-65]

Citation 2019-LL-0215-65
Appellant Name The Pr. Commissioner of Income-tax-5
Respondent Name Liquid Investment and Trading Co. Pvt. Ltd.
Court HIGH COURT OF DELHI AT NEW DELHI
Relevant Act Income-tax
Date of Order 15/02/2019
Judgment View Judgment
Keyword Tags tax exempt income • question of law • recording of satisfaction • computation of disallowance
Bot Summary: CORAM: HON BLE MR. JUSTICE S. RAVINDRA BHAT HON BLE MR. JUSTICE PRATEEK JALAN ORDER 15.02.2019 In this appeal the assessee had for A.Y. 2007-08 offered 85,48,009/- as disallowance under Section 14A. The AO rejected this but without recording reasons for satisfaction; and disallowed 2,95,03,813/-. The CITA gave partial relief and restricted the disallowance to 1,21,64,443/-. The ITAT in the assessee s appeal followed the principle enunciated by this Court in Joint Investments Pvt. Ltd. vs. CIT, Reported in 372 ITR 694, that the disallowance cannot exceed the tax exempt income and reduced the disallowance what was so offered by the assessee. The Court is of the opinion that since the ITAT has followed this Court s decision, no question of law arises.


$ 29 * IN HIGH COURT OF DELHI AT NEW DELHI + ITA 158/2019 & CM Appl. 7146/2019 PR. COMMISSIONER OF INCOME TAX-5 Appellant Through: Mr. Ruchir Bhatia, Sr. Std. Counsel. versus LIQUID INVESTMENT AND TRADING CO. PVT. LTD. Respondent Through: Ms. Devika Jain, Adv. CORAM: HON BLE MR. JUSTICE S. RAVINDRA BHAT HON BLE MR. JUSTICE PRATEEK JALAN ORDER % 15.02.2019 In this appeal assessee had for A.Y. 2007-08 offered 85,48,009/- as disallowance under Section 14A. AO rejected this but without recording reasons for satisfaction; and disallowed 2,95,03,813/-. tax exempt income in this case was 30,12,127/-. CIT[A] gave partial relief and restricted disallowance to 1,21,64,443/-. ITAT in assessee s appeal followed principle enunciated by this Court in Joint Investments Pvt. Ltd. vs. CIT, Reported in (2015) 372 ITR 694 (Del), that disallowance cannot exceed tax exempt income and reduced disallowance what was so offered by assessee. Court is of opinion that since ITAT has followed this Court s decision, no question of law arises. appeal is accordingly dismissed. S. RAVINDRA BHAT, J PRATEEK JALAN, J FEBRUARY 15, 2019/ pv Pr. Commissioner of Income-tax-5 v. Liquid Investment and Trading Co. Pvt. Ltd
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