Itxa/792/2018 Of The Pr. Commissioner Of Income Tax - 3 v. Shapoorji Pallonji And Co. Ltd

IN THE HIGH COURT OF JUDICATURE AT BOMBAYPURTIPRASADORDINARY ORIGINAL CIVIL JURISDICTIONPARAB Digitally signed byPURTI PRASAD PARABDate: 2023.10.0710:38:04 +0530 INCOME TAX APPEAL NO. 792 OF 2018 The Pr. Commissioner of Income Tax – 3 V/s.Shapoorji Pallonji and Co. Ltd. ….Appellant …Respondent ---- Mr. Suresh Kumar for Appellant.Mr. Divesh Chawla i/b Mr. Atul K. Jasani for Respondent. ---- CORAM : K.R. SHRIRAM & NEELA GOKHALE, JJ. DATED : 4[th] OCTOBER 2023 P.C. : 1.The following three substantial questions of law are proposed inthis appeal. QUESTIONS OF LAW 1.Whether on the facts and circumstances of the case and in Law,the Hon’ble ITAT was justified in restricting the disallowance made u/s14A of the Act to Rs.10,00,000/- giving relief of Rs.63,49,38,829/-without appreciating the fact that the disallowance was worked out asper Rule 8D read with section 14A of the Income Tax Act, 1961? 2. Whether on the facts and circumstances of the case and in Law,the Hon’ble ITAT was justified in deleting the disallowance ofRs.19,74,00,000/- u/s 36(1)(iii) of the Income Tax Act, 1961 withoutappreciating the fact that the AO held it to be for non-business purposeand disallowed interest @14% on the entire advance given? 3. Whether on the facts and in the circumstances of the case and inLaw, the Hon’ble ITAT was justified in restricting the disallowance u/s.14A under rule 8D(2) of Rs.4,62,71,213/- (which was enhanced by Ld.CIT(A) at Rs.63,58,38,829/-) to Rs. 10 lakh and thereby restricted theadjustment made u/s. 115JB to Rs. 10 lakh from Rs.63,58,38,829/- anddeleting the disallowance u/s. 14A and foreign exchange fluctuations tothe book profit u/s. 115JB of the I.T. Act, 1961, ignoring the decisionsof the Hon’ble ITAT, Mumbai in the cases of ITO v/s. RBK Share BrokingPvt. Ltd. - 37 Taxmann 128 (2013), M/s. Viraj Profiles Ltd. in ITA No.4439/Mum/2013 dated 21/10/2015 – 46 ITR(T) 626 (Mumbai)? 2.This Appeal pertains to Assessment Year 2011-12. Identicalquestions of law were proposed (except figure differed) in Income TaxAppeal No. 1298 of 2017 pertaining to Assessment Year 2010-11. Thatappeal came to be dismissed by order dated 4[th] March 2020. 3.In the circumstances, we dismiss this appeal also. Appealdismissed. (NEELA GOKHALE, J.) (K.R. SHRIRAM, J.)