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

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.

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.

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 Juri ictional 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.

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