C/Taxap/259/2018 Order v. Nirma Credit And Capital Pvt. Ltd. Passed In Tax Appeal

C/TAXAP/259/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 259 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX 3VersusP G FOILS LTD ==========================================================Appearance: MRS MAUNA M BHATT(174) for the PETITIONER(s) No. 1 for the RESPONDENT(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE AKIL KURESHIandHONOURABLE MR.JUSTICE B.N. KARIA Date : 02/04/2018 ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI) 1.Revenue is in appeal against the judgment of the Income Tax Appellate Tribunal dated 13.09.2017 raising following questions for our consideration: “[A] Whether the Appellate Tribunal was right in law and on facts in upholding the decision of the CIT(A) and thereby deleting the addition of Rs.53,80,484/- u/s.14A r.w. rule 8D of the Act? [B] Whether the Appellate Tribunal was right in law and on facts in upholding the decision of the CIT(A) and thereby deleting the addition of Rs.30,15,144/- u/s.80IA of the Act?” 2.First question pertains to deletion of Rs.53.80 lakhs made by the Commissioner of Income Tax (Appeals) and the Tribunal which was added by the C/TAXAP/259/2018 ORDER Assessing Officer under section 14A of the Income Tax Act, 1961 ('the Act' for short). Commissioner of Income Tax (Appeals) though accepted that section 14A would be applicable, held that it would only be the net of the interest expenditure and not the gross which would be added. Tribunal confirmed this view. This Court in case of Principal Commissioner of Income Tax-3 v. Nirma Credit and Capital Pvt. Ltd. passed in Tax Appeal No.409 of 2017 has taken a similar view. No question of law arises. 3.Second question pertains to deduction of section 80IA of the Act. Commissioner of Income Tax (Appeals) and the Tribunal observed that in view of the relief in connection with the disallowance under section 14A of the Act, this issue has become inconsequential. 4.In the result, Tax Appeal is dismissed. (AKIL KURESHI, J) ANKIT SHAH (B.N. KARIA, J)