IN THE HIGH COURT OF DELHI AT NEW DELHI 
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   ITA 26/2012  
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 CIT              ..... Appellant 
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 Through Mr. Kamal Sawhney, Sr. 
 Standing Counsel. 
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 versus 
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 KRISHAK BHARTI COOPERATIVE LTD    ..... Respondent 
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 Through 
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 CORAM: 
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 HON'BLE MR. JUSTICE SANJIV KHANNA 
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 HON'BLE MR. JUSTICE R.V.EASWAR 
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 O R D E R 
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      19.01.2012 
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 Heard. 
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 On the question of interpretation of Section 14A of the Income Tax 
 Act, 1961 and whether the interest income exempt under Section 80P is 
 covered and can be taken into account for disallowance under Section 14A, 
 the following substantial question of law is framed:- 
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 ?(i) Whether the Income Tax Appellate Tribunal was correct in law in 
 holding that no disallowance can be made against income which is not 
 specifically exempt under the Act? 
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 (ii) Whether the Income Tax Appellate Tribunal was correct in 
 distinguishing between deduction and exemption, which does not find any 
 support in the language of Section 14A?? 
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 With regard to insurance premium, in ITA 444/2011, the High Court 
 had refused to admit the said appeal under Section 260A of the Act. 
 Accordingly on the said question, the present appeal is not entertained. 
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 The third issue raised by the Revenue in the present appeal 
 pertains to loss sustained by the respondent-assessee. The Assessing 
 Officer had held that entries in the books of accounts during the 
 relevant previous year was not made and did not form part of the audit 
 report. The claim was made before the Assessing Officer.   The findings 
 recorded by the tribunal are that the respondent-assessee, in fact, had 
 suffered loss during the relevant previous year. Insurance claim for the 
 said loss was received and disclosed by the assessee as income during the 
 relevant previous year. The tribunal, accordingly, confirmed the order of 
 the CIT (Appeals), allowing the said loss.  It is obvious that there was 
 an error, which was corrected by the assessee and the appellate 
 authorities have accepted the plea of the respondent-assessee. It is not 
 disputed on merits that the loss was incurred.  In view of the aforesaid 
 we are not inclined to admit the present appeal on third ground. 
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 Filing of printed paper books is dispensed with. However, parties 
 are given liberty to file documents/material, which were filed before the 
 authorities/tribunal within 12 weeks. The period of 12 weeks will begin 
 from the date notice is received by the respondent-assessee. 
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 List in the category of ?Regular Matters?, along with ITA 1206/2011 
 and other connected matters. 
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 SANJIV KHANNA, J. 
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 R.V.EASWAR, J. 
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 JANUARY 19, 2012 
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 NA 
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 $ 01 
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