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TMI Blog2019 (6) TMI 1674X X X X Extracts X X X X X X X X Extracts X X X X ..... COURT] as held that the provisions of Section 14A of the Income Tax Act, 1961 would not apply to the facts of this case as no exempt income was received or receivable during the relevant previous year. It is not the case of the Assessing Officer that any actual income was received by the assessee and the same was includible in the total income. In the facts of the case, the Authorities held that since the investments made by the assessee in the sister concerns were not the actual income received by the assessee, they could not have been included in the total income. It is not in dispute that the assessee has not earned any exempt income during this Assessment Year, therefore in the absence of any exempt income there shall not be any dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fully considered the facts of the case, the assessment order and the written submission of the appellant. It has been contended by the appellant that the provisions of section 14A are not applicable to the appellant's case since it has not earned any tax exempt income during the year. In this regard, it is noticed from the details of Other income furnished in Note No. 12 to the financial statements that the appellant has not earned any income by way of dividends during the year from the investments held by it. In the following cases, the Hon'ble High Courts have held that no disallowance u/s. 14A is warranted in a year where no tax exempt income was received by the assessee. 1) Lakhani Marketing Inc 49 taxmann.com 257 (P H) 2) S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITA.No. 346 to 379/NAG/2014 dated 04.12.2015 the Nagpur Bench of the Tribunal following the decision of the Hon'ble Delhi High Court in the case of Cheminvest v. CIT (supra) held as under: - 6. We have heard both the sides at some length and carefully perused the orders of the authorities below in the light of the precedence cited. As far as the exemption for the years under consideration were concerned, it was an admitted factual position that the AO has not mentioned any such amount. Meaning thereby, there was no exempt income earned by the assessee for the years under consideration. In reply to one of our questions, the learned AR, Mr. K. P. Dewani has also made a statement at Bar that no dividend was declared, hence, there was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enditure incurred in relation to the said income. In other words, Section 14A will not apply if no exempt income is received or receivable during the relevant previous year. 7. In short, in a situation when that very order of the Tribunal which was the basis for invocation of the provisions of Section 14A of the IT Act got reversed by the Hon ble Delhi High Court, hence, the very said basis do not survive any more. As a result, we hereby confirm the findings of the learned CIT (A) on this issue. We hereby also hold that in view of the numbers of decisions on this issue in favour of the tax payers, we find no force in this ground of appeal of the Revenue. The same is dismissed. 7. This decision of the Tribunal has been affirmed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee, they could not have been included in the total income. The findings of facts recorded by both the Authorities do not give rise to any substantial question of law. Since no substantial question of law arises in this income tax appeal, the income tax appeal is dismissed with no order as to costs. 8. It is not in dispute that the assessee has not earned any exempt income during this Assessment Year, therefore in the absence of any exempt income there shall not be any disallowance u/s. 14A of the Act. Thus, respectfully following the above decision of the Hon'ble Jurisdictional High Court in the case of Pr.CIT v. M/s. Ballarpur Industries Limited (supra), I uphold the order of the Ld.CIT(A) and reject the grounds ..... X X X X Extracts X X X X X X X X Extracts X X X X
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