9911796707
TMI Blog2024 (12) TMI 459X X X X Extracts X X X X X X X X Extracts X X X X ..... from AY 2022-23, no addition u/s 14A can be made where the assessee has not earned any exempt income. We therefore hold the PCIT invocation of section 263 was invalid. Accordingly, the Ground raised by the assessee is allowed. - Shri Mahavir Singh, Vice President, And Shri Naveen Chandra, Accountant Member For the Assessee : Shri Rakesh Joshi, CA For the Department : Shri Dayainder Singh Sidhu, CIT-DR ORDER PER NAVEEN CHANDRA, ACCOUNTANT MEMBER:- This appeal by the assessee is preferred against the order of the ld. PCIT, Faridabad dated 21.03.2024 framed u/s 263 of the Income-tax Act, 1961 [the Act, for short] pertaining to A.Y. 2018-19. 2. The assessee has raised the following grounds of appeal: 1. On the fact and circumstances of the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were heard at length, the case records carefully perused and we have duly considered the documentary evidences brought on record in the form of Paper Book in light of Rule 18(6) of ITAT Rules. 5. Briefly stated, the facts of the case are that the assessee filed its return of income for the year under consideration u/s 139(1) of the Income-tax Act, 1961 [the Act, for short] on 20.10.2018 declaring total income of Rs. 2,57,70,840/- pursuant to which, scrutiny assessment u/s 143(3) of Act was completed on 25.06.2021 at the returned income. 6.The ld. PCIT invoked section 263 of the Act to revise the order of the Assessing Officer noting that as per explanation to section 14A, the Assessing Officer was required to disallow expense as per Rule 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visions of section 14A r.w.r 8D squarely apply and invoking the provisions of section 14A r.w.r 8D, directed the Assessing Officer to compute the disallowance at Rs. 14,76,036/-. 12. The aggrieved assessee is now in appeal before us. 13. Before us, the ld. counsel for the assessee stated that during the year under consideration, the assessee has not received any exempt income and, therefore, no disallowance is to be made u/s 14A of the Act. The ld AR argued that there is no dividend or any exempt income earned by the assessee during the year. The ld DR further argued that amendment to section as explanation was brought in w.e.f 01.04.2022. 14. Per contra, the ld DR relied on the order of the PCIT. 15. We have heard the rival submissions and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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