9911796707
TMI Blog2024 (11) TMI 1317X X X X Extracts X X X X X X X X Extracts X X X X ..... on 14A introduced vide Finance Act, 2022 w.e.f. 01.04.2022 is prospective in nature which provides that disallowance u/s. 14A is to be made even when the assessee has not earned any exempt income and the same has been reiterated by the decision of Era Infrastructure (India) Ltd. [ 2022 (7) TMI 1093 - DELHI HIGH COURT ] which has been followed in various other subsequent decisions. Appeal filed by the assessee is allowed. - Shri Om Prakash Kant, AM And Ms. Kavitha Rajagopal, JM For the Assessee : Shri Nimesh Jain For the Respondent : Shri Tushar Mohite ORDER PER KAVITHA RAJAGOPAL, J M: This appeal has been filed by the assessee, challenging the order of the learned Commissioner of Income Tax (Appeals) ( ld.CIT(A) for short),National Facele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant craves leave to submit such facts / documents/ evidences in the course of hearing as may be necessary. 3. Brief facts of the case are that the assessee company was incorporated as a private limited company under the Companies Act, 1956 and had filed its return of income on 15.03.2022, declaring Nil income. The return of income was processed u/s. 143(1) of the Act and the assessee s case was selected for scrutiny under CASS and notices u/s. 143(2) and 142(1) of the Act were duly issued and served upon the assessee. The learned Assessing Officer ('ld. A.O.' for short) had passed the assessment order u/s. 143(3) r.w.s. 144B of the Act on 20.12.2022, declaring total income at Rs. 21,71,769/- after making addition/disallowance u/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mphasizes that disallowance u/s. 14A of the Act is warranted even when no exempt income has been earned during the year under consideration. The ld. DR relied on the order of the lower authorities. 9. We have heard the rival submissions and perused the materials available on record. It is observed that the assessee has challenged the disallowance made by the ld. A.O. and upheld by the ld. CIT(A) u/s. 14A r.w.r. 8D(2)(ii) amounting to Rs. 2,15,773/-. It is also observed that the assessee has not earned any exempt income during the impugned year and it is now a settled preposition of law that disallowance u/s. 14A cannot be made when the assessee has not earned any exempt income during the year under consideration. It is also pertinent to poi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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