Quick Heal Technologies Limited Vs ITO (ITAT Pune)
The Income Tax Appellate Tribunal (ITAT), Pune Bench, adjudicated appeals filed by the assessee for Assessment Years (AYs) 2018-19 and 2020-21 against separate orders passed by the National Faceless Appeal Centre under Section 250 of the Income-tax Act, 1961. Both appeals arose from assessment orders passed under Sections 143(3) read with Sections 143(3A), 143(3B), and 144B of the Act. Since identical issues were involved in both years, the Tribunal treated AY 2018-19 as the lead case and held that its findings would apply mutatis mutandis to AY 2020-21.
The principal dispute related to the disallowance made under Section 14A read with Rule 8D of the Income-tax Rules, 1962. The assessee challenged the application of Rule 8D for computing expenditure relating to exempt income and argued that the suo motu disallowance already offered was reasonable, having been computed after considering both direct and indirect expenses. The assessee also contended that reliance placed on earlier assessment years was misplaced because the method adopted for computing disallowance in the years under consideration was more comprehensive than that followed in the past. However, during the hearing, the assessee chose not to press the ground relating to non-recording of objective satisfaction under Section 14A(2), and the same was dismissed as not pressed.
