ITA Nos.3880/Mum/2024 & CO No.189/Mum/2024 M/s. Godrej Properties Ltd. Appellant Vs. ACIT – 14(1) (2), Room No. 455, 4th Floor, Aayakar Bhavan, M. K. Road, Mumbai- 400 020. Respondent

Parties Involved

Facts Summary

The assessee, M/s. Godrej Properties Ltd., filed its return of income claiming a loss of Rs. (-120, 49, 42,463/-). The return was revised on 03.01.2019 claiming the same amount of loss. The assessee's case was selected for complete scrutiny under CASS, and relevant notices were issued. The Assessing Officer assessed the case making various additions/disallowances amounting to Rs. 1.68 lakhs, Rs. 6,18,74,204/-, and Rs. 7,24,896/- respectively under the heads 'Income from House Property' and 'Profit and Gains of Business or Profession'. The assessee appealed to the Commissioner of Income Tax (Appeal) who allowed the appeal and deleted the additions/disallowances. The Revenue filed an appeal against this order. The assessee also filed a cross-objection. The Tribunal examined the order of the Assessing Officer, the order of the Commissioner of Income Tax (Appeal), and the submissions of both parties.…

Legal Issues

• 1. Whether the Ld. CIT (A) was justified in deleting the disallowance made u/s. 14A r. w. Rule 8D (2)(ii) Of the Rules.
• 2. Whether the Ld. CIT(A) was justified in allowing the appeal of the assessee ignoring the fact that disallowance under Rule 8D(2)(iii) is warranted.
• 3. Whether the Ld. CIT (A) was justified in deleting the disallowance made u/s. 14A ignoring the CBDT Circular No. 5/2014 dated 11.02.2014.
• 4. Whether the Ld. CIT(A) was justified in deletion of addition made on account of mismatch of income as per ITS/26AS and the total income declared in ROI.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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