IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘E’ NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER Assessment Year: 2020-21 Assessment Year: 2020-21 Assessment Year: 2020-21 Assessment Year: 2020-21 Assessment Year: 2020-21 Assessment Year: 2020-21 Assessment Year: 2020-21 Assessment Year: 2020-21 With ITA Nos.2858/Del/2024 Assessment Year: 2020-21 Assessment Year: 2020-21 Assessment Year: 2020-21 Assessment Year: 2020-21 Assessment Year: 2020-21 Assessment Year: 2020-21 Assessment Year: 2020-21 Assessment Year: 2020-21 Assessment Year: 2020-21 Assessment Year: 2020-21 Assessment Year: 2020-21 Date of hearing 07.01.2026 Date of pronouncement 07.01.2026

ORDER

PER SATBEER SINGH GODARA, JM These assessee’s and Revenue’s cross appeals ITA Nos.1186/Del/2024 and 2858/Del/2024 for assessment year

2020-21, arise against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2023-24/1060534971(1), dated 06.02.2024 involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).

Heard both the parties. Case files perused.

2. The assessee’s former substantive ground in its appeal ITA No.1186/Del/2024 challenges both the learned lower authorities’ respective findings invoking section 14A read with Rule 8D disallowance of Rs.15,68,39,715/-; in assessment order dated

28.09.2022 and upheld in the lower appellate discussion.

3. That being the case, both the parties very fairly agree before us that the instant issue of section 14A read with Rule 8D disallowance is indeed a recurring one between the parties as the earlier learned coordinate bench’s order dated 19.11.2025 in assessment year 2018-19 dealing with identical cross appeals has already directed the Assessing Officer to re-compute the same after considering exempt income yielding investments in light of Crago Motors Pvt. Ltd. (2023) 453 ITR 554 (Delhi) and Vireet Investments P. Ltd. (2017) 82 taxmann.com 415 (Delhi) (SB). We accordingly reiterate our past remand directions to restore the instant section 14A read with Rule 8D disallowance back to the learned Assessing Officer in very terms.

4. Learned counsel next invites our attention to page 109 in the paper-book raising the assessee’s additional ground reading as under:

“1. The present appeal is filed by the Appellant before this Hon'ble Tribunal against the issues on which relief was not given by the Commissioner of Income Tax (Appeals) ["Ld. CIT(A)"] vide order passed under Section 250 of the Income-tax Act, 1961 ('the Act') dated

06.02.2024.

2. In this regard, the Appellant seeks to raise the following additional grounds in addition to the grounds already raised vide Form 36 with regards to the captioned matter-

Additional Grounds:

11. That in view of the fact and circumstances of the case and in law, the loss on account of extinguishing of Rs. 37.55 crore in Krishna Godavari Power Limited ('KGPL') is allowable for the deduction for the relevant AY 2020-21. The said deduction is allowable in respect of the said capital loss. After, allowing the benefit of indexation.

PTC India

12. That the Capital loss on account of extinguishment of said capital asset is allowable in A.Y. 2020-21 along with benefit of indexation, although the same is written off in the books of accounts in the subsequent A.Y. 2024-25. As such, the said loss is allowable after giving benefit of indexation.

3. It is humbly submitted that the Appellant company has written off above said capital loss in the Book of Accounts and claimed in the Profit and Loss Account for A.Y. 2024-25. The Appellant has no intention to make claim in two A.Y.(s). If the same is allowed in A.Y.

2020-21. The same shall be withdrawn for A.Y. 2024-25.

4. It is humbly submitted that the above-mentioned additional grounds are purely legal and the relevant facts are on record. It is submitted that the said additiona