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TMI Blog2025 (1) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal filed by the Revenue is dismissed. - Shri R. K. Panda, Vice President And Shri Vinay Bhamore, Judicial Member For the Revenue : Shri Ramnath P. Murkune For the Assessee : Shri Nikhil S. Pathak ORDER PER VINAY BHAMORE, JM: This appeal filed by the Revenue is directed against the order dated 18.07.2024 passed by Ld. CIT(A)-13, Pune [ CIT(A) ] for the assessment year 2015-16. 2. Although a number of grounds have been raised by the Revenue, however, these all relate to the order of Ld. CIT(A) in deleting the addition of Rs. 4,84,91,050/- made by the Assessing Officer u/s 14A of the IT Act. 3. Facts of the case in brief, are that the assessee is a company engaged in the business of manufacturing of tractors, agricultural equipments like ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tinad Logistics Pvt. Ltd. reported in 95 taxmann.com 250 (SC) and the decision of the Hon ble Delhi High Court in the case of McDonald s India Pvt. Ltd. reported in 101 taxmann.com 86 (Del). The various other decisions were also brought to the notice of Ld. CIT(A). 6. Based on the arguments to the proposition that when the investments were made out of assessee s own funds and no interest expenditure was incurred, therefore, there cannot be any disallowance u/s 14A of the Act advanced by the assessee, the CIT(A) deleted the addition by observing as under :- FINDINGS: 3.3 I have carefully considered the facts of the case and submission filed by the appellant. It is seen from the submission of the appellant that the appellant had made investme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant in this regard submits that during the year under consideration, no dividend was paid by the JDFIPL and hence, it has not earned any exempt income and as such the disallowance made u/s 14A of the Act is not warranted. The appellant further relied on the decision of the Hon ble Apex Court in the case of CIT, Central Vs. Chettinad Logistics (P.) Ltd. reported in [2018] 95 Taxmann.com 250(SC), wherein, Hon ble Court has dismissed the SLP filed by the Revenue and held that where no exempt income i.e., dividend, was earned in relevant assessment year by assessee, section 14A could not be invoked. Thus, respectfully relying on the decision of the Hon ble Apex Court, I find no reason in sustaining the disallowance made u/s 14A r.w. Rule 8D of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of HDFC Bank Ltd. 366 ITR 505. Secondly, the appellant has not earned any exempt income during the relevant financial year. It is also seen that the similar issue of disallowance u/s 14A of the Act has been decided in favour of the appellant by my predecessors in appellant s own case in AY 2012-13 and in AY 2014-15. The relevant paragraphs of the decision in AY 2014-15 are reproduced below as follows: QUOTE 11.3 I have carefully considered the submission of the appellant in light of the facts of the case and the judicial decisions relied upon by the appellant. The Ld. A.O. by applying Rule 8D, has worked out the disallowance u/s. 14A of the Income Tax Act, 1961 for Rs. 1,48,77,912/- on the tax free investments made by the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... passed by the Assessing Officer. 9. Ld. Counsel for the assessee on the other hand relied on the order of Ld. CIT(A) and submitted before us that in assessee s own case for Asstt. Year 2016-17, on identical facts of the case also on similar grounds of appeal the appeal filed by the Revenue has already been dismissed by this Tribunal. Accordingly it was prayed before the Bench to maintain parity dismiss the appeal filed by the revenue since during this year also the assessee has not earned any dividend income. 10. We have heard Ld. Counsels from both the sides and perused the material available on record. We find that in the assessee s own case for asstt. year 2016-17 the Co-ordinate Bench of this Tribunal in ITA No.1184/PUN/2024 order date ..... X X X X Extracts X X X X X X X X Extracts X X X X
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