2023 (5) TMI 1266 - HC - Income Tax

Disallowance u/s 14A r.w.r. 8D - Revenue disallowed the expenditure even there is no income i.e. dividend by taking recourse to Rule 8D - HELD THAT - As assessee had not earned any exempt income.There is no dispute that this issue is covered by a judgment Cheminvest Limited 2015 (9) TMI 238 - DELHI HIGH COURT and Chettinad Logistics (P.) Ltd. 2017 (4) TMI 298 - MADRAS HIGH COURT also confirmed by SC 2018 (7) TMI 567 - SC ORDER - No substantial question of law arises.

Summary

Issues:
- Condonation of delay in re-filing the appeal
- Deletion of disallowance u/s 14A of the Income Tax Act, 1961

Condonation of Delay:
The applications were moved by the appellant/revenue seeking condonation of a 285-day delay in re-filing the appeal. The delay was condoned based on the reasons provided in the applications, and the applications were disposed of accordingly.

Deletion of Disallowance u/s 14A:
The appeals pertained to Assessment Year (AY) 2013-14 and AY 2014-15. The only question raised in the appeals was regarding the deletion of disallowance made u/s 14A of the Income Tax Act, 1961. In ITA 316/2023, the disallowance was quantified at Rs.12,50,66,466, while in ITA 317/2023, the deletion of disallowance was Rs.8,41,21,936. It was found that the respondent/assessee had not earned any exempt income during the period in question. The issue was already covered by judgments of the coordinate bench of the Court, and it was noted that no substantial question of law arose for consideration. Therefore, the appeals were dismissed.