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TMI Blog2019 (5) TMI 1734X X X X Extracts X X X X X X X X Extracts X X X X ..... pt income and not claimed so in the return of income then the provision of section 14A are not applicable. We find that during the year under consideration the assessee company has not earned any exempt income and has not claimed any such exempt income in the return of income therefore as per our considered opinion the provision of section 14A are not applicable - we consider that the disallowance u/s. 14A r.w.s Rule 8D cannot be made as the assessee has not earned any exempt income. Accordingly, the appeal of the Revenue is dismissed. - ITA No. 2210 And 2211 /Ahd/2017 - - - Dated:- 15-5-2019 - Shri Mahavir Prasad, Judicial Member And Shri Amarjit Singh, Accountant Member Revenue by: Shri Kamlesh Makwana, Sr. D.R. Assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s required to be made u/s. 14A r.w. Rule 8D of the IT Rules. The assessee has also explained that it has not made any claim for exemption of any income from payment of tax, therefore, the disallowance u/s. 14A should not be made. The assessing officer has not accepted the explanation of the assessee after referring CBDT Circular No. 5/2014 dated 11th Feb, 2014 stated that disallowance can be made by invoking section 14A of the act even no income has been earned by an assessee claimed as exempt during the year under consideration. Therefore, the assessing officer has computed disallowance u/s. 14A r.w. Rule 8D to the amount of ₹ 4,72,00,565/- and added to the total income of the assessee. 4. Aggrieved assessee has filed appeal befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the decision of the Ld. CIT(A) vide which similar issue on identical facts have been decided in favour of the assessee. We have also perused the judicial pronouncement in the case of CIT v Corrtech Energy (p) Ltd (2014) 45 taxmann.com.116 of Hon'ble High Court of Gujarat wherein it is held that in a case assessee did not make any claim for exemption of any income from payment of taxes, in that case disallowance u/s 14A of the act could not be made. It is crystal clear that the jurisdictional High Court has decided that to attract the provision of section 14A it is required that assessee should have earned an exempt income, if the assessee has not earned an exempt income and not claimed so in the return of income then the provision o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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