ITA No.2970/M/2024 & CO No. 131/M/2024

Parties Involved

Facts Summary

ECAP Securities and Investment Ltd. has filed an appeal against the order of the Commissioner of Income Tax (Appeals) for the Assessment Year 2017-18. The appeal was filed against the disallowance of certain additions made under section 14A of the Income Tax Act, 1961. The revenue has also filed a cross-objection against the deletion of the additions made under section 14A. The case has been decided based on a previous order in ITA No. 2965/M/2024 for the Assessment Year 2018-19, which favored the assessee.…

Legal Issues

• 1. Whether the Commissioner of Income Tax (Appeals) was justified in not considering the amended provisions of the Finance Act 2022 under section 14A.
• 2. Whether the Commissioner of Income Tax (Appeals) was justified in deleting the addition made under section 14A without appreciating the facts that there is no evidence furnished by the assessee to prove that the borrowed funds on which interest is paid by it, are directly attributable to earning of taxable income only?

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

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