AI Insights
The case involves the Revenue's appeal against a decision by the ITAT, which had allowed the assessee's appeal concerning the disallowance of expenses under Section 14A of the Income Tax Act, 1961, related to exempt income from tax-free bonds and dividends. The Revenue challenged the ITAT's order, which pertained to the assessment year 2010-11, arguing that the ITAT erred in its decision. However, similar appeals for other assessment years had been dismissed by a Coordinate Bench, leading to the dismissal of the present appeal on the grounds that no substantial question of law was involved.
Appeal Details
Counselvise Citation
[2024] 140 COUNSELVISE.COM (IT) 719506 (HC-DELHI)
Assessee PAN
Bench
Appeal Number
CRN Number
Appellant
Respondent
Appeal Type
Others
Pronouncement Date
21-10-2024
Assessment Year
misc
Judgement Text
"$~4 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 506/2024 PRINCIPAL COMMISSIONER OF INCOME TAX DELHI- 04 .....Appellant Through: Mr. Abhishek Maratha, Sr. Adv. with Mr. Apoorv Agarwal, Mr. Parth Samwal, Ms. Nupur Sharma, Mr. Gaurav Singh, Mr. Bhanukaran Singh Jodha, Ms. Muskaa Goel & Mr. Himanshu Gaur, Advs. Versus NTPC LTD .....Respondent Through: Mr. Ved Kumar Jain, Mr. Nischay Kantoor & Mr. Govind Gupta, Advs. CORAM: HON'BLE MR. JUSTICE VIBHU BAKHRU HON'BLE MS. JUSTICE TARA VITASTA GANJU O R D E R % 21.10.2024 CM Nos.56662/2024 & 56663/2024 1. For the reasons stated in the applications, the delay in filing and re- filing the present appeal is condoned. 2. The applications are disposed of. ITA 506/2024 3. The Revenue has filed the present appeal impugning the common order dated 05.08.2022 passed by the learned ITAT in a batch of appeals / cross appeals including the assessee’s appeal being ITA No.7063/Del/2014 in respect of the assessment year (AY) 2010-11. The Revenue has filed the present appeal in respect of the impugned order insofar as it allowed the assessee’s appeal (ITA No.7063/Del/2014 for AY 2010-11). 4. The principal question projected by the Revenue relates to the addition of ₹4,40,76,00,000/- on account of disallowance under Section 14A of the This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 29/10/2024 at 12:02:43 Income Tax Act, 1961 (hereafter the Act). The assessee’s exempt income for the relevant assessment year (AY 2010-11) comprised of interest amounting to ₹999.12 crores on tax free bonds and dividend of ₹77.70 crores. These incomes were not chargeable to tax by virtue of Section 10 of the Act. The AO had sought to make a disallowance of expenditure under Section 14A of the Act in proportion to the income exempt from tax. 5. Admittedly, the assessee had not borrowed any funds for making an investment in the interest free bonds. The bonds were issued as a result of a One Time Settlement Scheme whereby, amounts due from other accumulated debtors were converted into the said investment. The dividend earned by the assessee was in respect of its own subsidiary joint venture company. 6. This Court is informed that the appeal preferred by the Revenue in respect of the common order impugned in the present petition in respect of other assessment years [being ITA Nos.502/2024 and 503/2024] have been dismissed by the Coordinate Bench of this Court on the ground that no substantial question of law arises in the present appeal. 7. Concededly, a similar order is required to be passed in this appeal as well. 8. Accordingly, the present appeal is dismissed. VIBHU BAKHRU, J TARA VITASTA GANJU, J OCTOBER 21, 2024 ‘gsr’ Click here to check corrigendum, if any This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 29/10/2024 at 12:02:43 "
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