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TMI Blog2015 (8) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee in both the appeals are allowed. We respectfully follow the decision of Minda Sai Limited, C/o. RN. Saraf & Co. Versus Income Tax Officer [2015 (1) TMI 555 - ITAT DELHI] wherein it has been held that in the absence of any exempt income, section 14A disallowance cannot be added to book profit u/s 115JB of the Act. Accordingly, we are inclined to hold that the direction of the CIT(A) in this regard are not sustainable in view of our conclusion in the earlier part of this order where we have hold that no disallowance u/s 14A of the Act r.w.r. 8D of the Rules is sustainable.- Decided in favour of assessee. - I.T.A .Nos.-563 & 564/Del/2013 - - - Dated:- 9-3-2015 - Shri Pramod Kumar And Shri C. M. Garg JJ. For the Appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r: 1. That the order dated 26-11-2012 passed u/s 250 of the Income Tax Act, 1961 by the Learned Commissioner of Income Tax (Appeals) I, New Delhi is against law and facts on the file in as much as he was not justified to uphold the action of the Learned Assistant Commissioner of Income Tax, Central Circle-13, New Delhi in adding back a sum of ₹ 4,03,33,786/- under section 14A of the Income Tax Act, 1961 on account of expenditure incurred in relation to exempt income while computing income under the normal provisions of the Income Tax Act, 1961. 2. That the order dated 26-11-2012 passed u/s 250 of the Income Tax Act, 1961 by the Learned Commissioner of Income Tax (Appeals) I, New Delhi is against law and facts on the file in as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment years were dismissed. The ld. CIT(A) also calculated that the amount of disallowance worked out by the AO was not correct and he enhanced the disallowance from ₹ 46,84,053/- to ₹ 47,99,535/- for AY 2009-10. 6. Now aggrieved the assessee is before this Tribunal in this second appeal with the grounds as reproduced hereinabove. Ground Nos. 1 2 in both the appeals of the assessee 7. We have heard both the sides and carefully perused the relevant material placed on record, inter alia, impugned orders, assessment orders and ratio of the decisions relied by both the parties. 8. At the outset the ld. Assessee s Representative (AR) submitted that the ld. CIT(A) was against the law and facts of the case inasmuch as he w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvested in the company which were not showing in the profit under business strategy and there was no exempt income for the assessee during both the assessment years under consideration, therefore, no disallowance can be made. 11. The ld. AR also placed reliance on the decision of ITAT C Bench in the case of Integrated Database India, Ltd. Vs. DCIT dated 6.2.2015 in ITA No.4582/Del/2013 for AY 2009-10 and submitted that taking cognizance of the decision of Hon ble Jurisdictional High Court in the case of Holcim India Pvt. Ltd. (Supra) it has been held that where the assessee had not earned any tax free income then in absence of any tax free income the corresponding expenditure could not worked out for disallowance u/s 14A r.w.r. 8D of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ench in the case of Integrated Database India Ltd. Vs. DCIT wherein referring to the observations of Hon ble High Court of Delhi in the case of Holcim India Pvt. Ltd. (Supra) it has been held that assessee has not earned any tax free income then in absence of any tax free income the corresponding disallowance could not be worked out for making disallowance u/s 14A r.w.r. 8D of the Rules. 16. In the present case, similar facts and circumstances have been noted by us and therefore, we are inclined to hold that the issue disallowance u/s 14A of the Act r.w.r. 8D of the Rules in both the appeals is squarely covered in favour of the assessee by the decision of Hon ble jurisdiction High Court of Delhi in the case of Holcim India Pvt. Ltd. (Sup ..... X X X X Extracts X X X X X X X X Extracts X X X X
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