Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 1483 - AT - Income TaxValidity of the notice issued under section 154 - disallowance u/s 14A - condonation of delay - Held that:- When the assessee has explained the facts and circumstances under which the assessee was having confusion in the mind for filing the separate appeal against the order passed u/s 154 on the issue of disallowance u/s 14A because the assessee had already filed an appeal before the CIT(A) raising the ground against the disallowance made u/s 14A by applying Rule 8D. Therefore, when there is no material or circumstances which suggest that the delay is deliberate or on account of culpable negligence and the assessee could not stand to benefit by resorting the alleged delay then the technical considerations should give the way to cause of substantial justice and, therefore, a liberal interpretation has to be given to the expression "sufficient cause". When the assessee was not going to take a benefit by filing the appeal belatedly then the explanation of the assessee has a sufficient cause cannot be doubted. Accordingly, we are satisfied that the assessee explained a sufficient cause for delay in filing the appeal before the CIT(A). Addition made under Rule 8D(2)(iii) being 0.5% of the average investment - Held that:- Rule 8D is not applicable for the A.Y. 2008-09 in view of the decision of Hon'ble Bombay High Court in the case of Godrej & Boyce Mfg. Co. Ltd. Vs. DCIT [2010 (8) TMI 77 - BOMBAY HIGH COURT ]. Accordingly, the addition made by Assessing Officer while passing the order u/s 154 is not sustainable and the same is deleted. We make it clear that the issue of disallowance u/s 14A is pending in the appeal against the original assessment order passed u/s 143(3) and, therefore, our observation and finding in this matter shall have no bearing on the merits of the issue of disallowance u/s 14A de hors the Rule 8D of the Income Tax Rules. Accordingly, we set aside the order passed u/s 154 of the Income Tax Act. - Decided in favour of assessee.
|