Puran Associates Pvt. Ltd., New Delhi V. ACIT, New Delhi

MA 272/DEL/2020

• Counselvise Citation: 27220124 RSA 2020
• Duration Of Justice: 3 year(s) 8 month(s) 23 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 19-08-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2013-2014
• Appeal Filed On: 26-11-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: OM PRAKASH
• Assessee Lawyers: M.P.RASTOGI; VIRTUE OF THIS MISCELLANEOUS APPLICATION IS
• Keywords: Rule 8D
• Section: 14A; 254(2)

Judgement Text

Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F”: NEW DELHI BEFORE SHRI C. N. PRASAD, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER MA No. 272/Del/2020 (In ITA No.3785/Del/2017 (Assessment Year: 2013-14) M/s. Puran Associates Pvt. Ltd, 4 th Floor, Punjabi Bhawan, 10, Rouse Avenue, New Delhi Vs. ACIT, Circle-20(1), New Delhi (Appellant) (Respondent) PAN:AAACP0458J Assessee by : Shri M. P. Rastogi, Adv Revenue by: Shri Om Prakash, Sr. DR Date of Hearing 05/04/2024 Date of pronouncement 20/08/2024 O R D E R PER M. BALAGANESH, A. M.: 1. By virtue of this miscellaneous application, the assessee seeks to recall the order passed by this Tribunal in ITA No. 3785/Del/2017 dated 29.05.2020. 2. We have heard the rival submissions and perused the material available on record. We find that this miscellaneous application has been filed to re- adjudicate the issue of disallowance u/s 14A of the Income Tax Act, 1961 ( in short „ Act‟ ) read with Rule 8D(2)(iii) of the Income Tax Rules, 1962 (in short “Rules”). The assessee is one of the holding company of Dabur India Ltd (DIL) from whom dividend of Rs. 26.48 crores was received. Out of the total exempt income received by the assessee in the sum of Rs. 31.88 crores, the assessee deducted the dividend income from Dabur India Ltd on the ground that no expenditure was incurred by it for the purpose of earning dividend from Dabur India Ltd. In fact, the assessee had made suo moto disallowance of expenditure u/s 14A of the Act in the sum of Rs. 10,82,334/- by applying Rule 8D(2)(iii) of MA No. 272/Del/2020 M/s. Puran Associates Pvt. Ltd Page | 2 the Rules, but in the said computation, the assessee had reduced 83%, being the proportionate share of dividend income received from DIL to the total exempt income. Accordingly, even though the gross disallowance under Rule 80(2)(iii) worked out to Rs. 63,98,902/-, the assessee ultimately offered only Rs. 10,82,334/- in the return of income as disallowance u/s 14A of the Act read with Rule 8D(2)(iii) of the Rules. The ld AO did not accept this claim of the assessee and proceeded to disallow the deduction claimed in the computation to the tune of Rs. 53,16,568/- u/s 14A of the Act. This action of the ld AO was upheld by the ld CIT(A). The Tribunal sustained the order of the ld AO by following the decision of the Hon'ble Supreme Court in the case of Maxopp Investments reported in 402 ITR 640 (SC). Before us, the ld AR was trying to interpret the applicability of the decision of the Maxopp Investments to the facts of the instant case by making long drawn arguments. We find that the long drawn arguments advanced by the ld AR is only trying to revisit and review the Tribunal order passed already and the view already taken thereon. None of the arguments advanced by the ld AR fall within the ambit of any mistake apparent from the record warranting rectification u/s 254(2) of the Act. Hence, we have no hesitation to hold that the assessee by virtue of this miscellaneous application is only seeking to review the Tribunal order which is impermissible u/s 254(2) of the Act. 3. In the result, the miscellaneous application of the assessee is dismissed. Order pronounced in the open court on 20/08/2024. -Sd/- -Sd/- (C. N. PRASAD) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 20/08/2024 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) MA No. 272/Del/2020 M/s. Puran Associates Pvt. Ltd Page | 3 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi