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IN THE INCOME TAX APPELLATE TRIBUNAL

KOLKATA ‘C’ BENCH, KOLKATA

Before

SHRI GEORGE MATHAN, JUDICIAL MEMBER

&

SHRI RAKESH MISHRA, ACCOUNTANT MEMBER

ITA No.: 338/KOL/2024

Assessment Year: 2011-12

DCIT, Circle-5(1), Kolkata Hindusthan National Glass

Vs. And Industries Limited

(Appellant) (Respondent)

PAN: AAACH7557G

Appearances:

Department represented by : Sandip Sarkar, JCIT, Sr. DR.

Assessee represented by : Akkal Dudhwewala, FCA.

Date of concluding the hearing : 28-October-2025

Date of pronouncing the order : 31-December-2025

ORDER

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

This appeal filed by the Revenue is against the order of the

Commissioner of Income Tax (Appeals)-NFAC, Delhi [hereinafter

referred to as Ld. ’CIT(A)’] passed u/s 250 of the Income Tax Act, 1961

(hereinafter referred to as ‘the Act’) for AY 2011-12 dated 21.07.2023.

1.1 The Registry has informed that the appeal is delayed, although

the number of days of delay is not mentioned. However, along with the

appeal memo, the Assessing Officer (“the Ld. AO”) has filed an

application seeking condonation of delay. The reasons mentioned are

that the ASR was submitted for approval of the PCIT for filing the appeal

before the Tribunal but was submitted without record and the

assessment order, the PCIT asking for clarification on the ASR, the ASR

being re-submitted, necessary hard copies of

documents/papers/details required to file the 2^nd appeal being collected

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ITA No.: 338/KOL/2024

Assessment Year: 2011-12

Hindusthan National Glass And Industrieslimited.

and prepared etc. It is further submitted that the appeal could not be

filed on or before the due date due to huge workload relating to time

barring assessments, penalties and writs filed by various assessees on

the proceedings under section 148A of the Act. It is also mentioned that

his charge was created by the merger of four circles and, therefore, the

workload became unmanageable, creating huge backlog which had now

somewhat normalised. Moreover, after merger, records were very

difficult to trace out and the relevant record was found on 26/12/2023.

Therefore, it has been requested to condone the delay of 140 days in

filing appeal before the Tribunal for the sake of substantial justice. On

going through the application, we are satisfied that the Revenue had

sufficient and reasonable cause for the delay, the delay is condoned and

the appeal is admitted for adjudication.

2. The Revenue is in appeal before the Tribunal raising the following

grounds of appeal:

“1. Whether on the feats and in the circumstances of the case and in law

the Ld. CIT(A) was justified in deleting the addition of Rs 4,74,22,91l/-

(3,94,98,436 +7924473) made u/s 14A of the Act read with Rule 8D of the

Income Tax Rules, 1962.

2. Whether on the facts and circumstances of the case the CIT(A) was

justified in deleting the addition of Rs 3,94,98,436/- made u/s 14A rw Rule

8D(2)(ii) on the ground that the assessee had own funds in the form of share

capital and reserves without appreciating the fact that the real test for

allowing relief is actual availability of interest free owned funds for making

investments and not mere reserves.

3. Whether on the facts and circumstances of the case the CIT(A) was

justified in deleting the addition of Rs 79,24,475/- made u/s 14A rw Rule

8D(2)(iii) and in directing to consider only the opening and closing value of

investments which actually yielded dividend income for the purpose of

computation of disallowance u/s 14A of the Act ignoring the Boards Circular

and the newly inserted Explanation to Section 14A which has been

incorporated to remove doubts.

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ITA No.: 338/KOL/2024

Assessment Year: 2011-12

Hindusthan National Glass And Industrieslimited.

4. That the appellant crave, leave to add to and/or alter, amend, modify or

rescind the grounds herein above before or hearing of this appeal.”

3. Brief facts of the case are that the return declaring total income of

₹ 1,01,21,34,588/- was filed on 29.09.2011 and during assessment, the

Assessing Officer (“