ACIT Vs Indiabulls Real Estate Ltd. (ITAT Delhi)
AO cannot reject suo-moto disallowance made by assessee under Section 14A of the Income Tax Act, 1961 without recording his satisfaction as required under Section 14A(2) of the Income Tax Act, 1961.
FULL TEXT OF THE ITAT JUDGEMENT
The present appeals have been filed by the revenue against the orders of the ld. CIT(A)-4 , New Delhi dated 18.10.2016 & 20. 10.2016.
2. Since, the issues involved in both the appeals are common, they were heard together and are being disposed off by common
3. In ITA No. 6602/Del/2016 , following grounds have been raised by the revenue:
“1.On the facts and circumstances of the case, the ld. CIT ( A) has erred in deleting the disallowance u/s 14A r. w. Rule 8D of the Act, amounting to Rs.16,37,03,673/-.
2. On the facts and circumstances of the case, the ld. CIT (A) has erred in deleting the disallowance of excess depreciation, amounting to 24,30,299/-.
3. On the facts and circumstances of the case, the ld. CIT (A) has erred in deleting the disallowance of additional claim of deduction on account of Employee Compensation Expenses, amounting to 66.33 crores.”
ITA No. 6602/Del/2016
Disallowance u/s 14 A:
4. The relevant facts required for the adjudication of this issue are:
