THE ACIT, CIRCLE-2(1)(2), AHMEDABAD vs. JAYHIND PROJECTS LTD., AHMEDABAD

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ITA 2564/AHD/2017Status: DisposedITAT Ahmedabad25 March 2019AY 2014-153 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 Section 14A is not applicable if the assessee has not claimed any exempt income. Therefore, the decision of the CIT(A) to delete the disallowance was upheld.

What were the facts?

The Assessing Officer disallowed Rs. 94,47,497/- under Section 14A of the Income Tax Act, 1961, on account of investments made by the assessee. The CIT(A) deleted this disallowance.

What were the issues?

Whether disallowance under Section 14A is permissible when no exempt income has been claimed by the assessee.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, AHMEDABAD “A” BENCH

Before: Shri Amarjit Singh

For Respondent: Shri Mudit Nagpal, Sr. D.R

PER : AMARJIT SINGH, ACCOUNTANT MEMBER:-

This revenue’s appeal for A.Y. 2014-15, arises from order of the CIT(A)-2, Ahmedabad dated 29-09-2017, in proceedings under section 143(3) of the Income Tax Act, 1961; in short “the Act”.

2.

The solitary ground of appeal of the revenue is against the decision of ld. CIT(A) in deleting the disallowance of Rs. 94,47,497/- u/s. 14A of the act.

I.T.A No. 2564/Ahd/2017 A.Y. 2014-15 Page No 2

3.

The fact in brief is that during the course of assessment, the assessing officer has noticed that assessee has made investment of Rs. 15,26,82,000/- as on 31st March, 2014. Thereafter, the assessing officer has computed disallowance of Rs. 94,47,497/- as per provision of section 14A r.w. Rule 8D of the act and added to the total income of the assessee.

4.

Aggrieved assessee has filed appeal before the ld. CIT(A). The ld. Ltd. (2014) 223 taxman.com 130. 5. We have heard the ld. departmental representative and perused the material on record carefully. After considering the decision of Hon’ble Jurisdictional High Court in the above cited case that no disallowance u/s. 14A is to be made in case assessee has not claimed any exempt income, therefore, considering the same, we are of the view that provision of section 14A of the act is not applicable in the case of the assessee, therefore, we do not find any error in the decision of ld. CIT(A). Accordingly, we do not find any merit in the appeal of the Revenue and the same is dismissed.

6.

In the result, the appeal of the Revenue is dismissed. Order pronounced in the open court on 25-03-2019 (MADHUMITA ROY) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad : Dated 25/03/2019

I.T.A No. 2564/Ahd/2017 A.Y. 2014-15 Page No 3

आदेश क" ""त"ल"प अ"े"षत / Copy of Order Forwarded to:-

1.

Assessee

2.

Revenue

3.

Concerned CIT

4.

CIT (A)

5.

DR, ITAT, Ahmedabad

6.

Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील"य अ"धकरण, अहमदाबाद

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