DWARKA INVESTMENT PVT LTD,DELHI vs. ITO WARD-7(1), DELHI
Before: SHRI SATBEER SINGH GODARAAssessment Year: 2018-19 M/s. Dwarka Investment Pvt. Ltd., DSC-260, DLF South Court, Saket, New Delhi Vs. Income Tax Officer, Ward-7(1), Delhi PAN: AADCD0098F (Appellant)
This assessee’s appeal for assessment year 2018-19, arises against the Commissioner of Income Tax (Appeals)/National
Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2024-25/1074644434(1), dated
18.03.2025 involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Heard both the parties. Case file perused.
2. It transpires during the course of hearing with the able assistance coming from both the parties that the learned lower
Assessee by Sh. S. Krishnan, Adv.
Sh. Harshit Chauhan, Adv.
Department by Sh. Manoj Kumar, Sr. DR
Date of hearing
22.07.2025
Date of pronouncement
22.07.2025
2 | P a g e authorities have invoked section 14A read with Rule 8D disallowance of Rs.16,75,506/- in the assessee’s case despite the fact that it has not derived any actual exempt income in the relevant assessment year. That being the case and in light of the fact that the legislature has inserted Explanation to section 14A making the same applicable even in absence of any exempt income vide Finance Act, 2021 with prospective effect only, I hereby quote
Cheminvest Limited Vs.CIT (2015) 378 ITR 33 (Delhi HC) to conclude that the impugned disallowance is not sustainable once the assessee has not declared any exempt income in its case.
3. This assessee’s appeal is allowed.
Order pronounced in the open court on 22nd July, 2025 (SATBEER SINGH GODARA)
JUDICIAL MEMBER
Dated: 22nd July, 2025. RK/-