Ita/158/2019 Of The Pr. Commissioner Of Income Tax-5 v. Liquid Investment And Trading Co. Pvt. Ltd

$~29 * IN THE HIGH COURT OF DELHI AT NEW DELHI+ ITA 158/2019 & CM Appl. 7146/2019 THE PR. COMMISSIONER OF INCOME TAX-5 ..... Appellant Through: Mr. Ruchir Bhatia, Sr. Std. Counsel. ..... Appellant versus LIQUID INVESTMENT AND TRADING CO. PVT. LTD. ..... Respondent Through: Ms. Devika Jain, Adv. CORAM:HON’BLE MR. JUSTICE S. RAVINDRA BHATHON’BLE MR. JUSTICE PRATEEK JALAN O R D E R % 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 tax exempt income in this case was ₹30,12,127/-. The CIT[A] 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 (2015) 372 ITR 694 (Del), 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. The appeal is accordingly dismissed. S. RAVINDRA BHAT, J FEBRUARY 15, 2019/‘pv’ PRATEEK JALAN, J