2023 (6) TMI 618 - HC - Income Tax

Disallowance u/s 14A - Expenditure incurred on exempt income - deletion of disallowance by Tribunal, as assessee has not made any claim qua exempt income - HELD THAT - There is no dispute, that this issue is covered by a judgment of Cheminvest Limited 2015 (9) TMI 238 - DELHI HIGH COURT and Chettinad Logistics (P.) Ltd. 2017 (4) TMI 298 - MADRAS HIGH COURT and revenue does not dispute the fact that special leave petition preferred against the said judgment was dismissed by the Supreme Court 2018 (7) TMI 567 - SC ORDER No substantial question of law arises for our consideration.

Summary

Issues:
- Condonation of delay in filing and re-filing the appeal
- Disallowance of exempt income under Section 14A of the Act

Condonation of Delay:
The applications were filed by the appellant/revenue seeking condonation of a 105-day delay in filing and a 125-day delay in re-filing the appeal. The respondent/assessee, represented by Mr. M.P. Rastogi, did not oppose the prayers made in the applications. Consequently, the prayers for condonation of delay were allowed, and the applications were disposed of accordingly.

Disallowance of Exempt Income:
The appeal pertained to Assessment Year 2014-2015 and aimed to challenge the order passed by the Income Tax Appellate Tribunal regarding the deletion of disallowance amounting to Rs.3,12,87,693. The Tribunal held that the disallowance under Section 14A of the Act was not sustainable as the respondent/assessee had not made any claim regarding exempt income. The issue was noted to be covered by previous judgments of the court and the Supreme Court's dismissal of a special leave petition. As no substantial question of law arose for consideration, the appeal was closed. It was highlighted that special leave petitions against other judgments were pending adjudication by the Supreme Court.