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2020 (8) TMI 678 - HC - Income TaxDisallowance u/s 14A r.w. Rule 8D - whether no exempt income was earned by the Appellant from this investment during this year ? - Whether ITAT was right in law in reinstating the deletion made on account of disallowance u/s 14A r.w. Rule 8D by the Commissioner of Income Tax (Appeals) notwithstanding the fact that no exempt income was earned by the Appellant from this investment during this year ? - whether the decision of the Special Bench of the Delhi Tribunal in the case of Vireet Investment Pvt. Ltd [2017 (6) TMI 1124 - ITAT DELHI] can be pressed into service after the decision of the Hon’ble Supreme Court in the case of Maxopp Investment Ltd. [2018 (3) TMI 805 - SUPREME COURT]? - HELD THAT:- Substantial questions of law framed for consideration with regard to the decision of the Hon’ble Supreme Court in the case of Maxopp Investment Ltd. Vs. CIT [2018 (3) TMI 805 - SUPREME COURT]we have to necessarily hold that such questions cannot be canvassed, as the decision rendered by the Hon’ble Supreme Court would cover those questions A decision has to be arrived at as regards the applicability of the decision of the Special Bench of the Delhi Tribunal in the case of Vireet Investment Pvt. Ltd., post the decision of the Hon’ble Supreme Court in the case of Maxopp Investment Ltd. In fact, in the assessee’s own case for the assessment year 2014-15 where the Tribunal remanded the matter to the Assessing Officer, the Tribunal took note of the decision of the Special Bench of the Delhi Tribunal in the case of Vireet Investment Pvt. Ltd., and passed such a remand order. We find that the effect of the remand order passed by the Special Bench of the Delhi Tribunal after the decision of the Hon’ble Supreme Court in the case of Maxopp Investment Ltd., has not been specifically decided though the Departmental Representative made certain submissions to the said effect. Tribunal should take a decision on the above extracted two grounds, which were raised by the assessee in their cross objection and the Tribunal should decide as to the applicability and effect of the remand order of the Special Bench of the Delhi Tribunal in the case of Vireet Investment Pvt. Ltd., post the decision of the Hon’ble Apex Court in the case of Maxopp Investment Ltd. We leave all the issues open and the assessee as well as the Revenue shall canvass all the points and more so because the decision of the Special Bench of the Delhi Tribunal in the case of Vireet Investment Pvt. Ltd., was not placed for consideration before the Hon’ble Apex Court while deciding the case of Maxopp Investment Ltd. Appeal is partly allowed, substantial question of law Nos.1 and 2 are held against the assessee and in so far as the third substantial question of law is concerned, the matter is remanded to the Tribunal to consider the effect of the decision of the Special Bench of the Delhi Tribunal in the case of Vireet Investment Pvt. Ltd., post the decision of the Hon’ble Supreme Court in the case of Maxopp Investment Ltd.
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