9911796707
TMI Blog2017 (5) TMI 1603X X X X Extracts X X X X X X X X Extracts X X X X ..... f the fact that the appellant had not received any exempt income during the year. 2. The Appellant company craves leave to add to amend, alter or modify any or all the aforesaid grounds of appeal. Ground No.1 2. This ground raised by the assessee is with regard to the action of Ld. CIT(A) in upholding the order of AO in invoking the provisions of section 14A of the I.T. Act inspite of the fact that the assessee had not received any exempt income during the year. 3. As per the facts of the present case, the assessee filed its return of income on 29.09.10 declaring total income at NIL. The assessment was completed vide order dated 1.3.13 u/s 143(3) whereby the total income was determined at Rs. 2,74,31,417 by way of making additions on a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... noted that in Cheminvest Ltd. vs ITO (2009) 121 ITD 318 (Delhi ITAT)(SB), the Hon'bte ITAT took a view that when the expenditure is incurred in relation to exempt income, it has to suffer disallowance irrespective of the fact whether any exempt income is earned by the assessee during the year or not. In coming to this conclusion, the special Bench had retied onto the decision of the Hon'bie Supreme Court in the case of CIT vs Rajendra Prasad Moody 115 ITR 519 (Supreme Court) wherein the Hon'ble Court had held that the deduction of the expenditure cannot be held to be conditional upon the making or earning of income Subsequently, the various High Courts had taken a view that unless there is exempt income in a year, no disallowan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T bearing No. 5/2014 dated 11.02.14. Whereas on the contrary, we have gone through the judgments referred and relied upon by Ld. AR wherein this issue has already been considered by different High Courts including jurisdictional High Court of Bombay (Nagpur Bench) in the case of Pr.CIT Vrs. Ballarpur Industries Ltd. ITA No. 51 of 2016 wherein it has been held that "By this income tax appeal the appellant-Department challenges the orders of the Commissioner of Income Tax and the Income Tax Appellate Tribunal, Nagpur. On hearing the learned Counsel for the Department and on a perusal of the impugned orders, it appears that both the Authorities have recorded a clear finding of fact that there was no exempt income earned by the assessee While ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... previous year. Since the facts of the present cae and the issue involved are identical with that of the judgment passed by the Hon'ble Bombay High Court. Therefore, respectfully following the decision of the jurisdictional High Court and in order to maintain judicial consistency which is applicable mutatis mutandis in the case of the assessee, we hold that since in the present case no exempt income has been received, therefore provisions of section 14A cannot be invoked by AO, Hence we allow this ground and directed AO to delete the disallowance. Ground No. 2 7. This ground is general in nature and requires no specific adjudication. 8. In the net result, the appeal filed by the assessee is allowed. Order pronounced in the open court on ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
