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TMI Blog2022 (6) TMI 410X X X X Extracts X X X X X X X X Extracts X X X X ..... as per the settled position of law no disallowance u/s.14A in absence of any exempt income could have been made in the hands of the assessee. In the backdrop of the facts involved in the case before us read with the aforesaid settled position of law we find substance in the claim of the Ld. AR that now when the assessee company had not received any exempt dividend income during the year under consideration, therefore, no disallowance u/s.14A of the Act was warranted in its case. We, thus, in terms of our aforesaid observations vacate the disallowance made by the assessing officer and thus the ground of appeal no. 2 is allowed. Disallowance u/s 43B on account of professional tax - HELD THAT:- Neither the submission was made nor any argu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2. On the facts and in the circumstances of the case, the Learned CIT(A) has erred in sustaining the order of the AO where in the AO has erred in making disallowance of Rs. 21,99,136/- u/s 14A r.w.r 8D of the Income Tax Act, 1961. The disallowance made by the AO and confirmed by CIT(A) is unjustified, unwarranted, and uncalled for. 3. On the facts and in the circumstances of the case, the Learned CIT(A) has erred in sustaining the order of the AO where in the AO has erred in making disallowance of Rs. 16,800/- u/s 43B on account of professional tax. The disallowance made by the AO and confirmed by CIT(A) is unjustified, unwarranted, and uncalled for. 4. The assessee reserves the right to add, amend or alter any grounds of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on and perusal of the balance sheet of the assessee company shows that an amount of Rs. 3.37,40,950/- is invested in shares of various companies. The assessee was asked to explain as to why corresponding expenditure should not be disallowed in view of the provision of section 14A r.w.r. 8D since the income from shares is exempt from tax. In response the assessee has submitted a detailed submission which the assessee has reproduced in his assessment order and finally derived a sum of Rs. 21,99,136/- as the amount disallowable as per provision of section 14A r.w.r. 8D. The ld. AO also added a sum of Rs. 16,800/- under section 43B being the amount not paid before the due date. 4. Aggrieved, the assessee carried the matter in appeal before t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r. 8D. 6. We have heard both the parties, perused the orders of the lower authorities and the material available on record, as well as considered the judicial pronouncements that have been pressed into service by the ld. AR in order to drive home his contentions. 7. Admittedly, as is apparent from the assessment order, the assessee company during the year under consideration had though made investment in exempt income yielding shares but had not received any exempt dividend income during the year under consideration. On the basis of the aforesaid facts, it was submitted by the Ld. Authorized Representative (for short AR ) that now when the assessee company had not received any exempt dividend income during the year under consideratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad not received any exempt dividend income during the year under consideration, therefore, no disallowance u/s.14A of the Act was warranted in its case. We, thus, in terms of our aforesaid observations vacate the disallowance of Rs.21,99,136/- made by the assessing officer and thus the ground of appeal no. 2 is allowed. 9. As regards the ground no. 3 raised by the assessee for disallowance of Rs. 16,800/- neither the submission was made nor any arguments were uttered at the time of hearing. The ld. CIT(A) has already based on his finding dismissed this ground and the ld. AR has not placed anything contrary to record at the time of hearing we do not find any reason to deviate from the findings of the lower authorities and in terms of thes ..... X X X X Extracts X X X X X X X X Extracts X X X X
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