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TMI Blog2015 (6) TMI 646X X X X Extracts X X X X X X X X Extracts X X X X ..... nnot find any fault in the order of the CIT. - Decided against assessee. Assessee had made an investment in M/s. Wonderla Holiday (P) Ltd, under the same management and on such investment Section 14A of the Act was applicable - Held that:- In so far as the issue relating to disallowance u/s.14A is concerned, there was no error in the assessment order, which could be considered as prejudicial to the interests of Revenue. As assessee did not have any exempt income. That a disallowance u/s.14A of the Act, can be made only if there is a claim of exempt income - Decided in favour of assessee. - I.T.A No.722/Bang/2013 - - - Dated:- 11-6-2015 - Shri. N. V. Vasudevan And Shri. Abraham P. George,JJ. For the Petitioner : Shri. Cherian B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or this purpose. As per the assssee, since land could be used as soon as it was purchased and there was no question of any installation, interest could be claimed as revenue expenditure. Alternatively it was submitted by the assessee that if it was not considered as revenue expenditure, it should be allowed to be capitalised along with the cost of acquisition of the asset. Vis- -vis, application of Section 14A of the Act, on investments made in Wonderla Holiday (P) Ltd, submission of the assessee was that no dividend what so ever was received from the said company during the relevant previous year. 05. However, CIT was not impressed in the above reply. According to him, the land purchased using the loan raised by the assessee was not use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by him at the stage of the assessment proceedings. Hence, in so far as this particular claim of the assessee is concerned, we cannot find any fault in the order of the CIT. However, vis-a-vis the second issue, viz., disallowance u/s.14A of the Act, assessee had pointed out before the CIT that it did not have any exempt income. That a disallowance u/s.14A of the Act, can be made only if there is a claim of exempt income, is clear from various judgments of Hon ble High Courts, which have been discussed hereunder in the following paragraphs : 09. In the case of CIT Vs M/s. Shivam Motors P.Ltd. (ITA number 88 of 2014 judgment dated 5-5-2014 for AY 2008-09) the question of law raised by the Revenue before the Hon Allahabad High Court was a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtech Energy Pvt. Ltd.(Tax Appeal 239 0f 2014 dated 24-3-2014) held as under:- We have given our thoughtful consideration to the facts and the decision relied upon by the Id AR. The Hon'ble Punjab Haryana High Court in the case of CIT vs. Winsome Textile Industries Ltd. reported at (2009) 3191TR 204(P H) has held that in the present case, admittedly, the assessee did not make any claim for exemption. In such a situation, section 14A could have no application. In this case also, the assessee has not claimed any exempt income in this year. Therefore, respectfully following the judgement of Hon'ble High Court of Punjab Haryana in the case of CIT vs. Winsome Textile Industries Ltd. (supra), we hereby allow this ground and direct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nership Firm and since profits derived by the Assessee Company from a Partnership firm were exempt from tax u/s.10(2A) of the Income-tax Act, the interest expense related to such tax free profits is to be disallowed u/s.14A of the Income Tax Act? In so far as Question (A) is concerned, on facts we find that there is no profit for the relevant assessment year. Hence the question as framed would not arise. 14. Similar view has been taken by the Hon be Punjab Haryana High Court in the case of CIT Vs. M/s. Lakhani Marketing Incl. in ITA No.970 of 2008 dated 2.4.2014. The Hon ble High Court while affirming the decisions of CIT(A) as well as the Tribunal in deleting the disallowance made under section 14A observed as under:- 7. After ..... X X X X Extracts X X X X X X X X Extracts X X X X
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