ACIT CIRCLE-27(2), NEW DELHI vs. ZUARI SUGAR & POWER LTD, NEW DELHI

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ITA 7/DEL/2020Status: DisposedITAT Delhi14 July 2022AY 2016-172 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 held that since the assessee had no exempt income, the disallowance and addition under Section 14A read with Rule 8D were not sustainable. The Revenue's appeal lacked substance.

What were the facts?

The Revenue appealed against an order that disallowed an addition made under Section 14A read with Rule 8D. The assessee had no exempt income in the relevant assessment year.

What were the issues?

Whether disallowance under Section 14A read with Rule 8D is sustainable when the assessee has no exempt income.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘H’ : NEW DELHI

Before: DR. B.R.R.KUMAR & SH. ANUBHAV SHARMA

For Respondent: DR Assessee, Shri KVSR Krishna, CA
Hearing: 12.07.2022Pronounced: 14.07.2022

The appeal has been filed by the Revenue against order dated 31.10.2019 in appeal no. CIT(A), Delhi 9/10399/2018-19 in assessment year 2016-17 passed by Commissioner of Income Tax (Appeals)-9, New Delhi (hereinafter referred to as the First Appellate Authority in short ‘Ld. F.A.A.’) in regard to the appeal before it arising out of assessment order dated 22/12/2018 u/s 143(3) of the Income Tax Act, 1961 passed by M/s. Zuari Sugar & Power Ltd. 2 Sh. Tatung Padi, Circle 27(2), Delhi (hereinafter referred to as the Assessing Officer ‘AO’).

2.

Heard and perused the record.

3.

There is no dispute of the fact that the assessee was not having any exempt income in the relevant year and the ld. CIT(A) while referring to various judicial precedents has concluded that as there is no exempt income, disallowance addition u/s 14A of the Act r.w.r. 8D(i) is not sustainable. Ld. Sr. DR has although relied orders of Ld. AO but could not cite any proposition of law to hold a different opinion then the one relied to by the Ld. CIT(A).

4.

In the light of aforesaid, there is no substance in the appeal of the Revenue, the same is dismissed.

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