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TMI Blog2020 (2) TMI 489X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome Tax -4 Vs. IL FS Energy Development Company Ltd [ 2017 (8) TMI 732 - DELHI HIGH COURT] held that CBDT circular referred to herein above cannot override the statutory provisions and declined to admit the related appeal raising similar question. Adverting to the facts of the present case, admittedly, there is no exempt income of the assessee in the year under consideration. Consequently, the questions proposed do not arise. - INCOME TAX APPEAL NO. 1701 OF 2017 - - - Dated:- 21-1-2020 - UJJAL BHUYAN MILIND N. JADHAV, JJ. Mr. Suresh Kumar a/w Priyanka Tiwari Sumandevi Yadav for the Appellant Mr. Anupam Dighe a/w Ms. Chandani Tanna i/by India Law Alliance for the Respondent P.C.: 1. Heard Mr. Suresh Kum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the case and in law, the Tribunal is justified in deleting the disallowance u/S. 14A of the Act after holding that investments made by the assessee are strategic in nature without appreciating the recent pronouncement of the Karnataka High Court in the case of United Breweries Ltd Vs. DCIT (2016) 72 Taxmann.Com 102 (Karnataka) wherein, it is clearly stated that strategic investment also fall in the purview of Section 14A? 4. From the above, it is evident that the issue involved is disallowance under Section 14A of the Act which was deleted by the Tribunal. 5. Section 14A deals with expenditure incurred in relation to income not includible in total income. Section 14A forms part of Chapter IV of the Act dealing with computation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome during the year under consideration. As held earlier by Delhi High Court which judgment is also followed repeatedly by our Court, in case of Chemvinvest Ltd Vs. Commissioner of Income Tax, reported in 378 ITR 33 , in such a case disallowance of expenditure under Section 14A of the Act would not be permissible. The decision of Delhi High Court was carried in appeal by the revenue. The SLP has been dismissed by the Supreme Court. 7. Again Delhi High Court in case of Pr. Commissioner of Income Tax -4 Vs. IL FS Energy Development Company Ltd (Income Tax Appeal No. 520 of 2017), decided on 16.8.2017 , held that CBDT circular referred to herein above cannot override the statutory provisions and declined to admit the related appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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