The Tax Publishers2021 TaxPub(DT) 3916 (Mum-Trib)

INCOME TAX ACT, 1961

Section 254(1)

Assessee by way of additional grounds of appeal raised before ITAT, challenged disallowance made by AO under section 14A on the ground of non-recording of objective satisfaction by AO in terms of section 14A(2). These grounds raised by assessee were purely legal issues, the facts whereof were already on reccord and since the issues were only legal issues, same were admitted for adjudication.

Appeal (Tribunal) - Additional grounds - Admissibility - Legal issues

Assessee by way of additional grounds of appeal raised before ITAT, challenged disallowance made by AO under section 14A on the ground of non-recording of Satisfaction by AO in terms of section 14A(2) regarding making disallowance of deduction of education cess on income-tax and secondary and higher education cess on income-tax as expenditure and also expenditure incurred on Employee Stock Option Plan (ESOP) under section 37(1). Held: Additional grounds raised by assessee were purely legal issues, the facts whereof were already on record and since the issues were only legal issues, same were admitted for adjudication.

Followed:National Thermal Power Co. Ltd. v. CIT (1998) 229 ITR 383 (SC) : 1998 TaxPub(DT) 342 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2012-13 & 2013-14


INCOME TAX ACT, 1961

Section 14A Rule 8D

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