9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (12) TMI 1689 - AT - Income TaxAddition u/s 14A read with Rule 8D on account of expenses relatable to earning of tax exempt income - HELD THAT - No disallowance is attracted u/s 14A in case the assessee has not earned any income not forming part of the total income. In view of this, we do not find any merit in the appeal of the Revenue and the same is accordingly dismissed. See WINSOME TEXTILE INDUSTRIES LTD. 2009 (8) TMI 220 - PUNJAB AND HARYANA HIGH COURT , CHEMINVEST LIMITED 2015 (9) TMI 238 - DELHI HIGH COURT - Decided against revenue.
Issues involved: Appeal against deletion of disallowance under section 14A of the Income-tax Act, 1961 read with Rule 8D of the Income Tax Rules, 1962.
Analysis: 1. Issue: Deletion of disallowance under section 14A of the Income-tax Act. The Revenue appealed against the Commissioner of Income Tax (Appeals) decision to delete the disallowance made by the Assessing Officer under section 14A of the Income-tax Act, 1961. The Assessing Officer had computed the disallowance using Rule 8D of the Income Tax Rules due to the assessee's investments generating tax-exempt income. However, the CIT(A) overturned this decision based on the assessee's argument supported by various High Court decisions. The CIT(A) relied on the Tribunal's previous ruling in the assessee's case for assessment year 2007-08 and cited judgments from different High Courts, including Punjab and Haryana, Delhi, Gujarat, and Allahabad. These judgments collectively established that no disallowance under section 14A is warranted if the assessee has not earned any income not forming part of the total income. Consequently, the appeal of the Revenue was dismissed. 2. Decision: The Appellate Tribunal, consisting of SHRI SANJAY GARG, JUDICIAL MEMBER, and Ms. ANNAPURNA GUPTA, ACCOUNTANT MEMBER, upheld the CIT(A)'s decision to delete the disallowance under section 14A of the Income-tax Act. The Tribunal's ruling was based on the principle established by various High Court judgments that no disallowance is applicable under section 14A if the assessee has not earned any income not forming part of the total income. As a result, the appeal of the Revenue was dismissed, and the order was pronounced in the Open Court on 12.12.2017.
|
