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TMI Blog2020 (10) TMI 607X X X X Extracts X X X X X X X X Extracts X X X X ..... er Section 14A of the Act can be made. Similar is the decision in Pr. CIT v. M/s Ballarpur Industries Ltd. [ 2016 (10) TMI 1039 - BOMBAY HIGH COURT] and Winsome Textiles Industries Ltd. [ 2009 (8) TMI 220 - PUNJAB AND HARYANA HIGH COURT] Also in the case of ACIT v. Vireet Investment (P.) Ltd. [ 2017 (6) TMI 1124 - ITAT DELHI] has held that computation under clause (f) of Explanation 1 to section 115JB(2) is to be made without resorting to computation as contemplated u/s 14A r.w. Rule 8D. - Decided against revenue. - ITA No. 4416/MUM/2012 ITA No. 1860/MUM/2013 ITA No. 5728/MUM/2013 ITA No. 4511/MUM/2018 - - - Dated:- 9-10-2020 - SHRI SAKTIJIT DEY (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) Revenue by : Mr. V. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1,64,66,893/-. In AY 2012-13, the assessee filed a reply before the AO vide letter dated 29.12.2014 stating that they have not received any dividend income and hence no disallowance u/s 14A r.w. Rule 8D be made. We refer here to para 4.2 of the assessment order dated 23.02.2015. However, the AO made a disallowance of ₹ 4,85,695/-. 3. As delineated hereinabove, the assessee has not received any exempt income in the impugned assessment years. For AY 2008-09, the Ld. CIT(A) confirmed the disallowance made by the AO in the normal computation of income but deleted the disallowance made in the calculation of book profit u/s 115JB of the Act. For AY 2009-10, the Ld. CIT(A) deleted the disallowance of ₹ 3,52,29,192/- made by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITA No. 6678/Mum/2011) in support of his contentions that the AO has rightly made the addition while arriving at the book profit u/s 115JB of the Act. 5. We have heard the Ld. DR and perused the relevant materials on record. The reasons for our decisions are given below. There is no dispute in these appeals that the assessee did not earn any exempt income. Also there is no dispute that the assessee did not make any claim for exemption. That when there is no exempt income earned by the assessee, no disallowance u/s 14A of the Act can be made is no longer res integra. In Pr. CIT v. Huntsman International (India) Pvt. Ltd. (ITA No. 1619 of 2016), the Hon ble Bombay High Court vide order dated 30.01.2019 has held that:- 5. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espect of expenditure incurred by the assessee in relation to income which does not form part of the total income under the said Act. In other words, Section 14A provides that if there is an income which does not form a part of the total income under the said Act, the expenditure which is incurred for earning the income is not an allowable deduction. Therefore, during the relevant year, if the assessee has not earned any tax free income, the corresponding expenditure incurred cannot be taken into consideration for dis-allowance. 4. We respectfully concur with the view taken by the Delhi High Court as the said view can always be taken on fair reading of Section 14A of the said Act. A Division Bench of Allahabad High Court has also take ..... X X X X Extracts X X X X X X X X Extracts X X X X
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