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TMI Blog2025 (1) TMI 1337X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) had partly allowed the appeal against the Assessment Order, dated 31/12/2019, passed under Section 153A read with Section 143(3) of the Act for the Assessment Year 2015-2016. 2. The Revenue has raised following grounds of appeal : "i. On facts and in the circumstances of the case, the Ld. CIT(A) erred in deleting the disallowance made under section 14A of the Income Tax Act, 1961 on the ground that no exempt income was earned during the year by overlooking the clarification of legislative intent provided by the CBDT vide Circular No.5/2014 dated 11/02/2014 and to this effect even an amendment was made by Finance Act, 2022 by way of insertion of Explanation to Section 14A?. ii. On the facts and in the circumstances of the case, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the IT Rules while computing income under the normal provisions of the Act. The CIT(A) also granted relief to the Assessee by deleting the upward adjustment of INR.7,98,56,915/- for the purpose of computing Book Profits under Section 115JB of the Act by following the decision of the Special Bench of the Tribunal in the case of ACIT Vs. Vireet Investments Private Limited 58 ITR(T) 313 (Delhi-Trib)(SB)/[2017]82. 5. Being aggrieved, the Revenue has now preferred the present appeal before the Tribunal. Ground No.1 6. Ground No.1 raised by the Revenue is directed against the order of CIT(A) deleting disallowance of INR.7,98,56,915/- made under Section 14A read with Rule 8D of the IT Rules by computing income under normal provisions of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clearly brings out the intention of the legislature to give retrospective effect to the provisions contained in Section 14A of the Act which are now to be interpreted taking into account the Explanation inserted by the Finance Act 2022. Referring to the clarification provided under the sub-heading "The clarification in respect of disallowance under Section 14A in absence of any exempt 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs and Constructions Ltd: 112 Taxmann.com 322 SC, DCIT Vs State Bank of Patiala: 99 Taxmann.com 286 SC, and DCIT Vs. Reliance Ports and Terminals Ltd: 114 Taxmann.com 529 Bombay. Further, relying upon paragraph 7 of the clarification in respect of disallowance under Section 14A of the Act contained in Memorandum to Finance Bill 2022, Ld. Authorised Representative for the Assessee submitted 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in nature and therefore, the order of CIT(A), passed by following the binding judgments of the Hon'ble Jurisdictional High Court, cannot be set aside by the applying the amended provisions of Section 14A of the Act. 7. We note that the Mumbai Bench of the Tribunal has, in the case of Assistant Commissioner of Income Tax- Circle 3(1)(1) Vs Bajaj Capital Ventures (P.) Ltd.: [2022] 140 taxmann.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 Princi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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