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TMI Blog2022 (3) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... for the Assessment Year (A.Y.) 2011-12 and 2012-13. Cross objections are filed by the assessee in support of the orders of the Ld.CIT(A). Since the grounds raised in these appeals are common, these appeals are clubbed, heard together and a common order is being passed for the sake of convenience as under. The only grievance of the revenue is that the Ld.CIT(A) allowed the additional ground raised by the assessee even though revised return of income was not filed by the assessee, thereby restricting the disallowance to Rs. 5,52,505/- u/s 14A of the Income Tax Act, 1961 (in short 'Act'). 2. Briefly stated facts are that the assessee is a company, filed it's return of income, declaring total income of Rs. 10,62,74,570/- for the A.Y.2011-12/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal pending on issues which are not related to the fresh claim of allowance. In other words, whether the assessee can make a claim of an allowance in appellate proceedings when the cause of action for such appeal is not the claim of allowance freshly made by the assessee. 3. Whether the appellate authority is correct in law in granting an allowance/deduction which was not disallowed by the AO. 4. Whether the appellate authority/CIT(A) is correct in law in granting an allowance which was not claimed by the assessee in Return of Income. 5. The appellant craves leave to add or delete or amend or substitute any ground of appeal before and / or at the time of hearing of appeal. 6. For these and other grounds that may be urged at the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to entertain the additional claim of the assessee during the appellate proceedings. Therefore, the Ld.CIT(A) rightly considered this issue and passed the orders. Hence, the orders passed by the Ld.CIT(A) to be confirmed. 7. We have heard both the parties, perused the material placed on record and the case laws filed by the assessee and revenue. Now, the only issue involved in these appeals is whether the Ld.CIT(A) is correct in restricting the disallowance u/s 14A for Rs. 5,52,505/- under normal provisions and under section 115JB of the Act. Before the Ld.CIT(A), it was the submission of the assessee that the assessee disallowed a sum of Rs. 14,63,01,503/- u/s 14A of the Act both under the regular provisions and computation of both as p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e additional claim of the assessee during the appellate proceedings. On merits, the Ld.CIT(A) relied on the decision of Hon'ble Madras High Court in the case of Redington (India) Ltd. vs. Addl.CIT reported in 77 taxman.com 257 (MDS), wherein it was held that if the assessee has not received dividend income, section 14A r.w.r.8D of the Act cannot be made applicable in the absence of exempt income and also the Ld.CIT(A) relied on the decision of SC in the case of Pr.CIT Vs. Oil Industries Development Board reported in 103 taxman.com 325 (SC), the apex court has dismissed the revenue's appeal against the High Court's decision, wherein, it was held that in the absence of any exempt income disallowance u/s 14A of any amount was not permissible. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1,503/- u/s 14A r.w.8D. We are of the considered opinion that the Ld.CIT(A) has considered all the aspects and passed detailed speaking order by following the decision of the Apex court and various high courts. Now it is settled issue that if the assessee has not received dividend income, section 14A r.w.r.8D of the Act cannot be made applicable in the absence of exempt income. Therefore, we do not find any infirmity in the order passed by the Ld.CIT(A). Hence, we are inclined to uphold the order of the Ld.CIT(A) and dismiss the ground No.1 to 4 raised by the revenue. 10. Ground No.5 in ITA No.48/Viz/2021 is related to disallowance of expenditure amounting to Rs. 49,10,545/- which is preliminary and capital in nature. As per the contention ..... X X X X Extracts X X X X X X X X Extracts X X X X
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