THE DY. CIT, ANAND CIRCLE, ANAND vs. M/S. ANUPAM INDUSTRIES LTD., ANAND

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ITA 227/AHD/2017Status: DisposedITAT Ahmedabad15 January 2019AY 2013-145 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 upheld the CIT(A)'s decision to partly allow the disallowance on sales promotion expenses, dismissed the disallowance on legal and professional fees, and also dismissed the disallowance under Section 14A as no exempt income was earned.

What were the facts?

The revenue filed appeals against the orders of the CIT(A) concerning disallowances on sales promotion expenses, legal & professional fees, and Section 14A. The Assessing Officer had made additions for these items, which the CIT(A) partly or fully allowed.

What were the issues?

Whether disallowances made by the Assessing Officer on sales promotion expenses, legal fees, and under Section 14A were justified, especially when no exempt income was earned.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 14A

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(4)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, AHMEDABAD “D” BENCH

Before: Shri Rajpal Yadav & Shri Amarjit Singh

For Appellant: Shri M.K. Patel, A.R
For Respondent: Shri Vinod Tanwani, Sr. D.R, Shri M.K. Patel, A.R

per section 14A r.w. rule 8D to the amount of Rs. 1,06,77,266/- and added to the total income of the assessee. 10. The assessee has preferred appeal before the ld. CIT(A). The ld. CIT(A) has restricted the addition to the amount of Rs. 2 lac on the ground that assessee has not shown sufficient interest free fund available with it as per the balance sheet ending on 31st March, 2012.The net reserves of the assessee company was of Rs. 139,21,54,435/- whereas the value of investment was only Rs. 40,24,00000/-. The ld. CIT(A) has also placed on the reliance on the decision of Hon’ble Gujarat High Court in the case of CIT vs Gujarat Industrial Corporation (2013) 318 taxman 142 (Guj) , CIT vs. Torrent Power Ltd. (2014) 222 taxman 367 (Guj) and the decision of CIT vs. Hittachi Home and Life Solutions (P) Ltd. (2014) 41 taxman 540 (Guj).

11.

We have heard the rival contentions and perused the material on record .It is noticed that assessee has not earned any exempt income during the year under consideration and the Hon’ble Gujarat Hugh Court in the case of CIT vs. Corrtech Pvt. Ltd. (2014) 45 taxman.com 16 held that where assessee has not shown any exempt income there cannot be any expenses to be disallowed. In the light of the above facts and judicial findings, we do not find any merit in the ground of appeal, therefore, the same is dismissed.

12.

In the result, appeal ITA 226/Ahd/2017 filed by revenue is dismissed.

13.

In the combined result, appeal ITAs 226 & 227/Ahd/2017 filed by revenue are dismissed. Order pronounced in the open court on 15-01-2019

Sd/- Sd/- (RAJPAL YADAV) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad : Dated 15/01/2019

I.T.A No. 226 & 227/Ahd/2017 A.Y. 2012-13 to 2013-14 Page No 5 DCIT vs. M/s. Anupam Industries Ltd.

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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