INCOME TAX ACT, 1961

Section 14A

Disallowance under section 14A - Expenditure against exempt income - Matter not decided -

AO made disallowance under section 14A. However, CIT(A) deleted the said disallowance following the decision of Tribunal in assessee's own case for earlier assessment year. Revenue contended that the said decision of Tribunal on the basis of which the CIT(A) deleted the disallowance made under section 14A, was challenged by it in the Supreme Court, wherein the impugned issue of disallowance was decided in its favour. Held: It was found that the Supreme Court decision, which was highlighted by Revenue was passed on ex-parte basis and the issue was decided in favour of the Revenue. That further the said order being ex-parte, the assessee filed a curative petition before the Supreme Court and the Supreme Court recalled the ex-parte order to be heard on merits. Thereafter, whether the Supreme Court heard the appeal or decided the appeal on merits was not coming out from the facts on record nor the Revenue was in a position to state the correct legal scenario. Therefore, it had to be ascertained whether after recalling the ex-parte order, the Supreme Court heard the appeal on merits or not and hence, the matter was remitted to CIT(A) for fresh adjudication after taking into consideration recent legal developments, specifically the order passed by the Supreme Court on merits, if any.

REFERRED :

FAVOUR : Matter remanded

A.Y. : 2009-10 to 2011-12

INCOME TAX ACT, 1961

Section 147

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