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TMI Blog2018 (8) TMI 1488X X X X Extracts X X X X X X X X Extracts X X X X ..... nce under section 14A can be made. TDS u/s 194J - Disallowance u/s.40(a)(ia) - payment was made by the assessee towards terminal charges for accessing online information and data base of Bloomberg Data Services Pvt. Ltd - Held that:- The payment made by the assessee not being in the nature of fee for technical services as per the provision of the 194J of the Act, it does not require deduction of tax at source. Therefore, we delete the disallowance made by the Assessing Officer and sustained by the Commissioner (Appeals). Levy of interest under section. 234C - Held that:- Levy of interest under section 234C of the ACT has to be made on the basis of income returned by the assessee. Moreover, there is no clarity on what basis the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e mode and manner prescribed under rule 8D(2). Though, the assessee stated before the Assessing Officer that no interest bearing fund was utilized for making investment, however the Assessing Officer was of the view that as per Rule 8D(2)(ii), interest disallowance has to be computed on interest expenditure. Accordingly, he proceeded to compute disallowance under Rule 8D(2) which worked out to Rs..16,35,365/ which included interest expenditure of Rs..15,15,283/ . The assessee having already disallowed an amount of Rs..12,98,664/ ,the Assessing Officer added back balance amount of Rs..3,36,901/ . Being aggrieved of such addition, assessee preferred appeal before the Commissioner of Income Tax (Appeals). 5. Before the First Appellate Auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section.14A, however, as per the settled legal principle no disallowance is to be made in absence of any exempt income. Therefore, even the disallowance made by the assessee has to be deleted. 8. The ld. Departmental Representative (DR) relying upon of the observations of Commissioner (Appeals) submitted that assessee should have filed revised return of income for rectifying the mistake committed by it. 9. We have considered rival submissions and perused the material on record. No doubt, assessee has voluntarily disallowed an amount of Rs..12,98,664/ under section.14A of the Act r.w.r. 8D. However, before ld. Commissioner (Appeals) the assessee has furnished modified grounds in respect of disallowance made under section.14A specifical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can be made. This view has been expressed by different High Courts including the Hon ble Delhi High Court in case of Cheminvest v/s. CIT (supra) as well as the Special Bench of the Tribunal in case of ACIT v/s Vireet Investment Pvt. Ltd., [2017] 165 ITD 26 (Del.). Thus as per the settled principle of law as it stands now, in absence of any exempt income earned in a particular assessment year, no disallowance u/s.14A can be made. Therefore, only because the assessee itself has made some disallowance under section.14A of the Act, it cannot be utilized to his detriment as there is no estoppel against law. 10. In view of the aforesaid, we direct the Assessing Officer to examine assessee s claim that in the relevant previous year, it has not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hallenged the aforesaid decision of the CIT(A) in so far as it relates to disallowance of Rs..18,81,790/ paid to M/s. Bloomberg Data Services Pvt. Ltd. 13. The ld AR submitted that the payment made by the assessee was not for availing any technical or managerial services but only for the purpose of accessing the terminal. He submitted, the payment made is in the nature of subscription to e magazine of the said company which is also available to other persons as well. In this context he invited our attention to the invoice raised at page 24 25 of the paper book. He also drew our attention to the letter issue by Bloomberg Data Services Pvt. Ltd that the payment made does not require deduction of tax at source which is placed at page 31 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh Court in case of CIT v/s. Indian Capital Markets(supra) while considering identical issue relating to payment made to M/s. Bloomberg Data Services Pvt. Ltd has held that the payment made is not for availing any technical or professional services, but is only a subscription to access Bloomberg magazines information. The same view has been expressed by the ITAT, Mumbai bench in case of Kitara Capital Pvt. Ltd. v/s. Income Tax Officer(supra). In view of the aforesaid, we hold that the payment made by the assessee not being in the nature of fee for technical services as per the provision of the 194J of the Act, it does not require deduction of tax at source. Therefore, we delete the disallowance made by the Assessing Officer and sustained by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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