Bennett Coleman & Co. Ltd. vs Deputy Commission of Income Tax

Parties Involved

Facts Summary

The case involves three appeals by Bennett Coleman & Co. Ltd. (Appellant) against the orders passed by the National Faceless Appeal Centre (NFAC) for the assessment years 2012-13, 2013-14, and 2014-15. The Appellant challenged the disallowance made by the Assessing Officer under Section 14A of the Income Tax Act, 1961, read with Rule 8D of the Income Tax Rules, 1962. The Appellant had made a voluntary disallowance of INR 5,42,906/- in its return of income, but the Assessing Officer made an additional disallowance of INR 1,43,83,306/- under Section 14A. The Appellant contended that the Assessing Officer failed to record dissatisfaction regarding the voluntary disallowance before invoking Rule 8D of the IT Rules. The Tribunal held that the Assessing Officer did not record the requisite dissatisfaction before invoking Rule 8D, and thus, the additional disallowance made by the Assessing Officer was not sustainable.…

Legal Issues

• 1. Whether the Assessing Officer recorded dissatisfaction regarding the voluntary disallowance made by the Appellant before invoking Rule 8D of the IT Rules?
• 2. Whether the additional disallowance made by the Assessing Officer under Section 14A of the Act read with Rule 8D of the IT Rules is sustainable?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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