2018 (5) TMI 1786 - HC - Income Tax

Disallowance u/s 14-A - AO had proceeded to calculate the disallowance based upon the investments made by the assessee - Held that - CIT(A) and the Income Tax Appellate Tribunal (ITAT) allowed the assessee s appeals by following the ruling in Cheminvest Limited vs. Commissioner of Income Tax-VI (2015 (9) TMI 238 - DELHI HIGH COURT) the Court had then held that in the absence of any exempt income disallowance was impermissible. For the relevant Assessment Year (2013-14) concernedly the assessee did not report any exempt income. Consequently no substantial question of law arises; the appeal is therefore dismissed along with the pending application.

Summary

The High Court of Delhi dismissed the Revenue's appeal regarding the disallowance made under Section 14-A of the Income Tax Act, 1961. The disallowance was based on investments made by the assessee, but as there was no exempt income reported for the relevant Assessment Year (2013-14), the appeal was dismissed.