9911796707
TMI Blog2016 (10) TMI 1294X X X X Extracts X X X X X X X X Extracts X X X X ..... M: This appeal by the Revenue is arising out of the order of the CIT (A)-12, Mumbai in appeal No.CIT(A)-12/Addl. CIT-6(2)60/10-11 dated 08-05-2013. Assessment was framed by the Addl. CIT, Range- 6(2), Mumbai for the assessment year 2008-09 vide his order dated 30-11-2010 u/s 143(3) of the Income Tax Act, 1961 (hereinafter the Act‟). 2. The only issue in this appeal of the Revenue is against the order of the CIT (A) in directing the AO to restrict the disallowance of expenses quo the exempted income at ₹ 1,16,03,269/- as against the disallowance made by the AO at ₹ 6,95,98,750/- by invoking the provisions of Section 14A of the Act read with Rule 8D of the Income Tax Rules, 1963 (hereinafter the Rules ) 3. We ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the Hon‟ble Delhi High Court rendered in the case of Cheminvest Ltd. Vs CIT 378 ITR 33 (Delhi) wherein it is held as under:- 23. In the context of the facts enumerated hereinbefore the Court answers the question framed by holding that the expression does not form part of the total income‟ in Section 14A of the Act envisages that there should be an actual receipt of income, which is not includible in the total income, during the relevant previous year for 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. 4.1 Further, we find that the Hon‟ble Punjab Ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decision of Bombay Bench of the Tribunal in the case of Joint Commissioner of Income Tax v. Holland Equipment Co. B.V. [2005] 3 SOT 810 (Mum.) and the relevant portion of the order of the Bombay Bench of the Tribunal is reproduced below:- 'Regarding application of Section 14A of the Act, the contention of the learned Department Representative has to be rejected on the face of it inasmuch as the entire income of the assessee is taxable under the Act. Section 14A is applicable only when any part of the income is not to be included in the total income of the assessee and the expenditure relating to that part of income is claimed by the assessee as deduction. In such cases only, the expenditure relating to the exempted income can be dis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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