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Income Tax Appellate Tribunal, HYDERABAD BENCHES : BENCH “B” HYDERABAD
Before: SHRI SATBEER SINGH GODARA & SHRI LAXMI PRASAD SAHU
This assessee’s appeal for AY.2014-15 arises from the CIT(A)-6, Hyderabad’s order dated 30.09.2019 passed in case No.10153/2017- 18/A3/CIT(A)-6, in proceedings u/s.143(3) r.w.s. 92CA of the Income Tax Act, 1961 [in short, ‘the Act’].
While dealing with the assessee’s instant early hearing application, it transpires during the course of hearing that its sole substantive grievance raised in the main appeal seeks to delete S.14A r.w.Rule 8D (2)(ii) proportionate interest disallowance of Rs.64,39,580/- made in both the lower proceedings. We notice that the assessee has not derived any exempt income in the relevant previous year. We rely on the following case laws:
AY 2014-15 Associated Broadcasting Co.Pvt.Ltd. (i) Cheminvest Ltd. Vs. CIT (2015) 378 ITR 33 (Delhi); (ii) CIT vs. Corrtech Energy Pvt.Ltd. (2014) 223 Taxman 130 (Guj.); (iii) CIT vs. Shivam Motors (2015) 230 Taxman 63 (All); (iv) CIT vs. Chettinad Logistics Pvt. Ltd. (2017) 80 Taxmann 55 (Mad) to hold that the impugned disallowance provision applies only in relation to exempt income than in absence thereof. We thus delete the impugned Sec.14A disallowance itself for this precise reason alone. Ordered accordingly. The assessee’s main appeal ITA 1853/Hyd/19 is allowed whereas its early hearing petition E.H.No.35/Hyd/2020 is dismissed since rendered infructuous. Pronounced in Open Court on 11th January, 2021.