9911796707
TMI Blog2018 (9) TMI 1756X X X X Extracts X X X X X X X X Extracts X X X X ..... penditure relating to the earning of dividend income. During the assessment proceedings, the Assessing Officer (AO) found that the assessee had made the investments in companies to the extent of Rs. 44, 43, 408/- which yields exempt income but did not make the disallowance as required u/s 14A r. w. Rule 8D of Income Tax Rules. Therefore, the AO made the disallowance of Rs. 1, 89, 829/- as per Rule 8D of Income Tax Rules. 3. Aggrieved by the order of the AO, the assessee filed appeal before the CIT(A) and the Ld. CIT(A) confirmed the order of the AO placing reliance on the decision of Hon'ble Bombay High Court in the case of Godrej & Boyce Manufacturing Co. Ltd. [328 ITR 81]. 4. Aggrieved by the order of the Ld. CIT(A), the assessee carrie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee company has no exempt income in the year under consideration. This Tribunal following the judgment of Hon'ble Madras High Court in the case of Redington India Private Limited Vs. ACIT 77 Taxmann. com 257 held in the case relied upon by the assessee that when there is no exempt income, there is no case for making the disallowance u/s 14A r. w. r 8D of the Act. For ready reference we extract the relevant paragraph of the order of the order of the Tribunal cited (supra) which reads as under: 6. We have heard the rival submissions and perused the material on record. The assessee has rental income from godowns and the business loss. The assessing officer has completed the assessment u/s 143(3) by order dated 04. 11. 2011. The Ld. CIT h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome earned by the assessee. The Ld. AR submitted paper book enclosing the copy of statement of computation, return of income, balance sheet and profit and loss account. It is seen from the profit and loss account and the statement of computation of income that the assessee has not derived any dividend income. When the assessee has no exempt income, the question of disallowance u/s14A r. w. Rule 8D is not called for. The same view is expressed by the decision of Hon'ble Madras High Court in Redington (India) Ltd. Vs. Addl. CIT, 77 taxman. com 257, Hon'ble Delhi High Court in Chem Investments Vs. CIT, 61 taxman. com 118 and the Hon'ble Gujarat High Court in Principal CIT Vs. Sintex Industries Ltd. , 82 taxman. com 171 held that no disallowanc ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
