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TMI Blog2019 (8) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... ement held that no disallowance under section 14A of the Act could be made in a year in which no exempt income had been earned or received by the assessee. It was held that the expression does not form part of the total income in section 14A envisages that there should be an actual receipt of income which is not includible in the total income during the relevant previous years for the purpose of disallowing any expenditure incurred in relation to the said exempt income. - Decided in favour of assessee. - ITA No.592/Bang/2019 - - - Dated:- 31-7-2019 - Shri N. V. Vasudevan, Vice President And Shri Jason P. Boaz, Accountant Member For the Assessee : Smt. Vaidehi. G., CA For the Revenue : Shri. Hari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.2 Before us, the ld. AR for the assessee submitted that in the year under consideration, the assessee has not earned any exempt income. In these circumstances, it is contended that the provisions of section 14A of the Act are not attracted and therefore no disallowance could have been made as per provisions of section 14A of the Act. In support of this proposition the ld. AR for the assessee placed reliance, inter alia, on the following judicial pronouncements:- (i) PCIT Vs. GVK Project and Technical Services Ltd., (2019) 106 taxmann.com 181 (SC); (ii) M/s. CCI Ltd., v JCIT, Udupi, in ITA No. 359/2011(Karnataka HC); (iii) Cheminvest Ltd. v CIT (2015) 378 ITR 33 (Delhi HC); ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the expression does not form part of the total income in Section 14A of the envisages that there should be an actual receipt of income, which is not includible in the total income, during the relevant previous year of the purpose of disallowing any expenditure incurred in relation to the said income. In other words, Section 14A will not apply if no exempt income is received or receivable during the relevant previous year. 3.4.2 In the case on hand admittedly, the factual position was that the assessee had not earned or received any exempt income in the previous year relevant to assessment year 2013-14. In these circumstances, in our considered view, the ratio of the decision of the Hon ble Delhi High Court in the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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