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TMI Blog2022 (8) TMI 430X X X X Extracts X X X X X X X X Extracts X X X X ..... on 14A introduced by the Finance Act 2022 shall apply from Assessment Year 2022-23 and onwards. Further, Hon ble Delhi High Court in the case of Principal Commissioner of Income-Tax (Central) -2 Vs. M/s Era Infrastructure India Ltd [ 2022 (7) TMI 1093 - DELHI HIGH COURT] has rejected the contention of the Revenue that amendments to Section 14A introduced by the Finance Act 2022 shall have retrospective effect. Accordingly, Ground No.1 raised by the Revenue is dismissed. MAT computation - Disallowance u/s 14A computed as per the provisions of Rule 8D of the Rules for the purpose of computing book profits in terms of Section 115JB - HELD THAT:- This issues stands decided in favour of the Assessee by the decision of Special Bench of the Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the circumstances of the case and in law, the Ld. CIT(A) is justified in restricting the addition of Rs. 3,02,08,627/- u/s 14A r.w. Rule 8D(2) of the Rules to Rs. 7,43,185/-. 2. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) is justified in directing the Assessing Officer to delete the disallowance made under section 14A r.w. Rule 8D to the Book profit relying on decision of Hon'ble ITAT in the assessee's own case for the A.Y. 2013-14 & 2014-15 wherein the Hon'ble Tribunal followed special Bench decision of Hon'ble ITAT, Delhi in the case of Vireet Investment Pvt. Ltd. without appreciating the fact that the Department has filed further appeal in the case of Vireet Investment Pvt. Ltd. and that m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income during an assessment year" contained in the Memorandum to the Finance Bill, 2022, the Learned Departmental Representative submitted that Memorandum clearly provides that the insertion of Explanation to Section 14A of the Act shall have effect from 01.04.2022 and would have effect retrospectively, whereas insertion of non-obstante clause in sub-section 1 of Section 14A will take effect from 01.04.2022 and shall apply in relation to the Assessment Year 2022-23, and subsequent assessment years. In support of the aforesaid submissions, the Learned Departmental Representative placed reliance on the judgment of the Hon'ble Supreme Court in the case of Commissioner of income tax Vs. Poddar Cement P Ltd : (1997) 226 ITR 625 (SC) [laying emph ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that it has been specifically provided that the amendment shall apply in relation to Assessment Years 2022-23 and subsequent assessment years. He further submitted that the aforesaid amendments to Section 14A were applicable only in a case where no exempt income was earned by the Assessee during the relevant previous year and did not apply in cases where exempt income was earned by the Assessee. He submitted that the judgments on which reliance has been placed by the Learned Departmental Representative were distinguishable on facts and could not be applied to interpret the amendments introduced in Section 14A by the Finance Act 2022. Relying upon the judgment of Hon'ble Supreme Court in the case of M.M. Aqua Technologies Vs CIT, Delhi-I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... axmann.com 1 (Mumbai - Trib.)[29-06-2022] and also in the case of Assistant Commissioner Of Income Tax Vs. K Raheja Corporate Services Private Limited [ITA No. 2521 to 2527], held that the amendments to Section 14A introduced by the Finance Act 2022 shall apply from Assessment Year 2022-23 and onwards. Further, Hon'ble Delhi High Court in the case of Principal Commissioner of Income-Tax (Central) -2 Vs. M/s Era Infrastructure India Ltd: [ITA No. 204 of 2022, decided on 20.07.2022] has rejected the contention of the Revenue that amendments to Section 14A introduced by the Finance Act 2022 shall have retrospective effect. Accordingly, Ground No.1 raised by the Revenue is dismissed. Ground No. 2 8. Ground No. 2 of the appeal is directed aga ..... X X X X Extracts X X X X X X X X Extracts X X X X
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