Relief to Oriental Insurance: ITAT Upholds Deletion of Rs. 21.36 Crore Disallowance u/s 14A [Read Order]
It was submitted by the assessee’s counsel that provisions of computing sub-sections (2) and (3) of Section 14A cannot be imported into clause (f) of the explanation to Section 115JA while calculating adjusted book profit
![Relief to Oriental Insurance: ITAT Upholds Deletion of Rs. 21.36 Crore Disallowance u/s 14A [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/04/Relief-Oriental-Insurance-ITAT-Deletion-of-Crore-Disallowance-taxscan.jpg "Relief to Oriental Insurance: ITAT Upholds Deletion of Rs. 21.36 Crore Disallowance u/s 14A [Read Order]")
The Delhi bench of the Income Tax Appellate Tribunal (ITAT) has upheld the deletion of Rs. 21.36 crore disallowance under Section 14A of the Income Tax Act, 1961. In this case, the revenue has appealed against the order of the Commissioner of Income Tax (Appeals) [CIT(A)] for the Assessment Year (AY) 2018-19. The assessee had also filed cross-objections against the order of CIT (A)...
The Delhi bench of the Income Tax Appellate Tribunal (ITAT) has upheld the deletion of Rs. 21.36 crore disallowance under Section 14A of the Income Tax Act, 1961.
In this case, the revenue has appealed against the order of the Commissioner of Income Tax
(Appeals) [CIT(A)] for the Assessment Year (AY) 2018-19. The assessee had also filed cross-objections against the order of CIT (A) dated 15.09.2023 for the AY as mentioned earlier.
India’s New Tax Era Begins – Are You Ready for the Changes? Click here
One of the grounds raised by the revenue in the present appeal was concerning the deletion of disallowance of Rs. 21,36,52,058 on account of under Section 14A of the Income Tax Act, 1961, and under Section 115JB of the Income Tax Act.
The assessee’s counsel contended that it had been held by the ITAT that while computing total income as per Rule 5 read with Section 44, provisions of Section 14A are not applicable, and in this regard, he relied on the ITAT order for AYs 00-01 and 01-02 reported in 130 TTJ 388 (Del).
India’s New Tax Era Begins – Are You Ready for the Changes? Click here
The assessee’s counsel relied on the decision of the Delhi High Court in the order dated 4-3-2020, reported in (2020) 118 taxmann.com 248 (Delhi) / 273 Taxman 427 (Del) which upheld the ITAT order for AY 2011-12 on the above issue.
READ MORE: ITAT Upholds CIT(A)’s Deletion of S.14A Disallowance Due to No Exempt Income
It was also submitted by the assessee’s counsel that provisions of computing sub-sections (2) and (3) of Section 14A of the Income Tax Act cannot be imported into clause (f) of the explanation to Section 115JA of the Act while calculating adjusted book profit.
Surprisingly, no objection was raised on behalf of the revenue by the departmental representative with regard to the above-mentioned proposition.
The ITAT bench, after going through the decisions of the ITAT and the Delhi High Court, upheld the decision of the CIT(A).
The ITAT, comprising Satbeer Singh Godara (Judicial Member) and S. Rifaur Rahman (Accountant Member), dismissed the appeal filed by the revenue, and the cross objections filed by the assessee were partly allowed for statistical purposes.
To Read the full text of the Order CLICK HERE
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
