ACIT, CORPORATE CIRCLE 3(1), CHENNAI vs. M/S. TIDEL PARK LIMITED, TARAMANI, CHENNAI

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ITA 357/CHNY/2023Status: DisposedITAT Chennai03 July 2023AY 2018-192 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the deletion of the disallowance, relying on the decisions of the Madras High Court and Delhi High Court. It was held that no disallowance under Section 14A is warranted when no exempt income is earned.

What were the facts?

The Revenue appealed the deletion of a disallowance made under Section 14A. The Assessing Officer had computed a disallowance of Rs. 153.25 Lacs, but the assessee had not earned any exempt income during the year.

What were the issues?

Whether disallowance under Section 14A is permissible when the assessee has not earned any exempt income during the assessment year.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, CHENNAI

Before: HON’BLE SHRI MAHAVIR SINGH, VP & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

आयकर अपीलीय अिधकरण “बी” �ायपीठ चे�ई म�। IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHENNAI माननीय �ी महावीर िसंह, उपा ! एवं माननीय �ी मनोज कुमार अ&वाल ,लेखा सद) के सम!। BEFORE HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ (िनधा*रण वष* / Assessment Year: 2018-19) ACIT M/s. Tidel Park Limited बनाम Corporate Circle-3(1), 4, Rajiv Gandhi Salai, / Vs. Chennai. Taramani, Chennai-600 113. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AABCT-0666-R (अपीलाथ�/Appellant) : (� थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Shri D.Hema Bhupal (JCIT)- Ld. DR � थ�कीओरसे/Respondent by : Shri R.Vijayaraghavan(Advocate)- Ld.AR सुनवाईकीतारीख/Date of Hearing : 03-07-2023 घोषणाकीतारीख /Date of Pronouncement : 03-07-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. The sole grievance of the Revenue in the captioned appeal is deletion of disallowance u/s.14A. Upon perusal of para 7.1 of the impugned order, it could be seen that the Ld. AO has computed disallowance u/s.14A for Rs.153.25 Lacs. However, the assessee has not earned any exempt income during the year. The Ld. CIT(A), relying on the decision of the Hon'ble Delhi High Court in the case of PCIT Vs. M/s. Era Infrastructure (India) Ltd., has deleted impugned disallowance. Aggrieved, the revenue is in further appeal before us.

2.

We find that this issue is squarely covered in assessee’s favour by the decision of the Hon’ble Madras High Court in the case of CIT Vs. Chettinad Logistics Pvt. Ltd. in TCA No. 24 of 2017 dated 13-03- 2017 wherein similar ratio has been laid down. Therefore, no interference is called for in the impugned order.

3.

The appeal stand dismissed. Order pronounced on 03rd July, 2023

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