Revenue appeal against ITAT order deleting disallowance under Section 14A of Income Tax Act. Bench dismissed appeal as no merit found, relying on Supreme Court precedents established in Essar Teleholdings and Oil Industry cases.
No order as to costs.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
Sonali Kilaje
2-ITXA-1545-17.doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION
INCOME TAX APPEAL NO. 1545 OF 2017
Pr.Commissioner of Income-Tax –16 .. Appellant
v/s.
Dish TV India Ltd. .. Respondent
Mr. Ashok Kotangle a/w. Prabhakar Ranshur and Sakshi Aundhekar for the Appellant.
Mr. Jay Nilesh Bhansali for the Respondent.
CORAM: UJJAL BHUYAN & MILIND N. JADHAV, JJ. DATE : FEBRUARY 11, 2020
P. C :-
revenue for the appellant and Mr. Bhansali, learned counsel for the respondent-assessee.
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Sonali Kilaje
2-ITXA-1545-17.doc
(a) Whether on the facts and in the circumstances of
the case and in law, Tribunal is justifed in deleting the disallowance under Section 14A of the Income Tax Act, 1961 ignoring the fact that investments in group companies will also yield exempt income which will attract disallowance under Section 14A of the Act read with Rule 8D of the Income Tax Rules, 1962 ?
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Sonali Kilaje
2-ITXA-1545-17.doc
the case and in law, Tribunal is justifed in deleting the disallowance under Section 14A of the Income Tax Act, 1961 without appreciating that it is not the object for which the investment was made, but the quality of income, tax-exempt or otherwise, that arises from the investment, needs to be considered for the purpose of section 14A of the Income Tax Act, 1961?
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Sonali Kilaje
2-ITXA-1545-17.doc
Development Board [2019] 103 taxmann.com 326(SC).
(MILIND N. JADHAV, J.)
(UJJAL BHUYAN, J.)
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3 issues framed by the court
Whether the Tribunal was justified in deleting the disallowance under Section 14A ignoring investments in group companies yielding exempt income.
Whether the object of investment or the quality of income arising from it determines applicability of Section 14A.
Whether the current appeal is maintainable in light of Supreme Court precedents on Section 14A disallowance.
Colour shows how this judgement treated each authority
CIT v/s. Essar Teleholdings Ltd.Referred¶4
CIT v/s. Essar Teleholdings Ltd., 401 ITR 445
Principal Commissioner of Income-Tax v/s. Oil Industry Development BoardReferred¶4
Principal Commissioner of Income-Tax v/s. Oil Industry Development Board [2019] 103 taxmann.com 326(SC)
2 provisions across 1 enactments
Pr. Commissioner of Income-Tax –16
Dish TV India Ltd.
Ujjal Bhuyan
Milind N. Jadhav
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
