DCIT , CIRCLE -25(1), NEW DELHI vs. TECHNO TREXIM (INDIA) PVT. LTD., NEW DELHI

1, This appeal is filed by the Revenue against the order of the Ld. Commissioner of Income Tax (Appeals)-9, New Delhi [hereinafter 1

At the outset, the ld. Counsel for the assessee submits that during the assessment year the assessee did not receive any exempt income and the ld. CIT (Appeals) deleted the disallowance. Following the decision of the Hon’ble Delhi High Court in the case of Cheminvest Limited Vs. CIT (378 ITR 33). The ld. Counsel further submits that in a recent decision, the jurisdictional High Court in the case of PCIT Vs. Eros Infrastructure (India) Ltd. In ITA. 204/Del/2022 dated 20.07.2022 held that the Amendment brought in by the Finance Act, 2022 to the provisions of section 14A of the Act clarifying even if there is no exempt income the provisions of section 14A read with Rule 8D have application was held to be applicable only prospectively.

The ld. DR supported the order of the Assessing Officer.

Heard rival submissions perused the orders of the authorities below. We observe that the ld. CIT (Appeals) deleted the disallowance made under section 14A of the Act for the reason that the assessee did not receive any exempt income during the assessment year under consideration. The ld. CIT (Appeals) followed the decision of the Hon’ble Delhi High Court in the case of Cheminvest Limited Vs. CIT (supra). We further observe that recently the Hon’ble Delhi High Court in the case of PCIT Vs. Eros Infrastructure (India) Ltd. (supra) and the Hon’ble Delhi High Court following the decision of apex court in the case of Sedco Forex International Drill. Inc Vs. CIT (2005) 12 SCC 717 and the decision of the Hon’ble Supreme Court in the case of M.M. Aqua Technologies Ltd. Vs. CIT in Civil Appeal Nos. 4742 and 4743 of 2021 (dated 11.08.2021) held that the Amendment to section 14A of the Act w/o for removal of 2

In the result, appeal of the Revenue is dismissed.