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TMI Blog2021 (4) TMI 727X X X X Extracts X X X X X X X X Extracts X X X X ..... s common issues are involved in the captioned appeals, the same are being taken up and disposed off by way of a consolidated order. 3. We shall first take up the appeal filed by the assessee for A.Y. 2010-11. The assessee has assailed the impugned order on the following standalone ground of appeal which is as under: - "The Ld.CIT(A) has erred in law and on the facts of the case in confirming the action of the Assessing Officer in making disallowance of Rs..1,42,50,500/- under section 14A of the income Tax Act where no exempt income was earned by the assessee company. The action is unjustified and unwarranted." 4. Briefly stated, the assessee company which is engaged in the business of property development/power generation with the help ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowance of Rs..58,06,026/- made by the Assessing Officer u/s. 14A r.w. Rule 8D(2)(ii). Also, taking cognizance of the fact that the Assessing Officer had wrongly considered the amount of the opening investments and closing investments for the purpose of computing the disallowance u/s. 14A r.w.Rule 8D(2)(iii), the Ld.CIT(A) reworked out the average value of investments at Rs..1,42,50,500/- and directed the Assessing Officer to modify the disallowance u/s. 14A r.w. Rule 8D(2)(iii). Also, drawing support from the order of the ITAT, Delhi 'H' Bench (Special Bench) in the case of ACIT v. Vireet Investment (P.) Ltd., 82 taxmann.com 415, the Ld.CIT(A) concluded that no adjustment could be made to the book profits u/s. 115JB of the Act in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee during the relevant previous year i.e. A.Y. 2010-11, Ld.A.R took us through the computation of income, copy of the return of income of the assessee and its audited accounts for the year in question. 9. Per contra, Learned Departmental Representative (for short 'Ld. D.R') relied on the orders of the lower authorities. However, Ld.D.R very fairly admitted that the assessee had not earned any exempt income during the year in question. 10. We have heard the authorized representatives of both the parties and perused the orders of the lower authorities and the material available on record, and also considered the judicial pronouncements that have been pressed into service by them to drive home their respective contentions. As obser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Delhi High Court held that the said expression 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. It was clarifed that Section 14A will not apply if no exempt income is received or receivable during the relevant previous year. 9. This view has been followed in several decisions by this Court. In fact in Income Tax Appeal No. 259 of 2017, Principal Commissioner of Income Tax, Mumbai v/s. MAN Infraprojects Ltd., decided on 09.04.2019, this Court followed the decision of the Delhi High Court in Cheminvest Ltd. (supra). It was further noted in MAN Infraprojects Ltd. th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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