JSW INFRASTRUCTURE LIMITED,MUMBAI vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 5(2)(1), MUMBAI, MUMBAI
IN THE INCOME-TAX APPELLATE TRIBUNAL “F” BENCH,
MUMBAI
BEFORE SMT. BEENA PILLAI, JUDICIAL MEMBER
&
SMT. RENU JAUHRI, ACCOUNTANT MEMBER
आयकर अपील सं./ITA No. 2045/MUM/2025
(निर्धारण वर्ा / Assessment Year :2017-18)
M/s JSW Infrastructure
Ltd.
5th Floor, JSW Centre,
Bandra Kurla Complex,
Bandra (E), S.O. Mumbai-
400051
v/s.
बिधम
DCIT, Circle 5(2)(1),
Mumbai
Aayakar Bhawan, Maharshi
Karve Road, New Marine
Lines, Churchgate,
Mumbai-400020
स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AABCJ6721D
Appellant/अपीलधर्थी
..
Respondent/प्रनिवधदी
निर्ााररती की ओर से /Assessee by:
Ms. Vinita Shah
रधजस्व की ओर से /Revenue by:
Ms. Kavitha Kaushik
सुिवधई की िधरीख / Date of Hearing
14.05.2025
घोर्णध की िधरीख/Date of Pronouncement
22.05.2025
आदेश / O R D E R
PER RENU JAUHRI [A.M.] :-
This appeal is filed by the assessee against the order of the Learned
Commissioner of Income-tax (Appeals), Mumbai/National Faceless Appeal
Centre, Delhi [hereinafter referred to as “CIT(A)”] dated 13.02.2025 passed u/s.
250 of the Income-tax Act, 1961 [hereinafter referred to as “Act”] for Assessment Year [A.Y.] 2017-18. P a g e | 2
A.Y. 2017-18
JSW Infrastructure Ltd.
The assessee has raised the following grounds of appeal: “1. On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in passing the ex-parte order without granting sufficient opportunity of being heard to the appellant. 2. On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in confirming the action of the Learned Assessing Officer in disallowing a sum of Rs.4,75, 14,520/-u/s.14A of the Income Tax Act, 1961 by invoking the Rule 8D of the Income Tax Rules, 1962, without considering the facts and circumstances of the case. 3. On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in confirming the action of the Learned Assessing Officer in making disallowance u/s.14A of the Act despite the fact that no exempt income was earned by the Appellant during the year under consideration, without considering the facts and circumstances of the case.”
Brief facts of the case are that the assessee filed return declaring nil income on 29.11.2017 for AY 2017-18. The case was selected for complete scrutiny, and the assessment was completed after making an addition of Rs. 4,75,14,520/- u/s 14A r.w. Rule 8D for expenses incurred towards earning exempt income. 4. Aggrieved with the order of Ld. AO, the assessee preferred an appeal before Ld. CIT(A). Vide order dated 13.02.2025, the addition made by Ld. AO u/s 14A r.w Rule 8D was confirmed. 5. Aggrieved with the order of Ld. CIT(A), the assessee preferred an appeal before the Tribunal. 6. At the outset, Ld. AR pointed out that the issue is squarely covered by the order of the coordinate bench in assessee’s own case for AY 2018-19 in ITA No. 6015/Mum/2024. On identical facts, the coordinate bench has held as under:
P a g e | 3
A.Y. 2017-18
JSW Infrastructure Ltd.
“4.5 As far as issue in dispute in the matter is concerned, we note that the Co-ordinate
Benches of the Tribunal have followed the decisions of the Hon'ble Delhi High Court in the case of Era Infrastructure Ltd. (supra) and held the applicability of the amendment to section 14A of the Act as prospective. The relevant finding of the Tribunal in the case of M/s Welspun Steel Ltd. in ITA No. 2137/Mum/2021 for assessment year 2015-16 is reproduced as under:
6. We have considered the rival submissions and perused the material on record. It is admitted position that the Hon'ble Bombay High Court and the Hon'ble Supreme Court have clearly held that disallowance under Section 14A of the Act cannot exceed the amount of exempt income earned by the Assessee during the relevant previous year.
The stand of the Revenue is that amendments to Section 14A introduced by the Finance Act 2022 apply retrospectively and therefore, the aforesaid judgments no longer hold good. Whereas the contention of the Assessee is that the said amendments to Section 14A of the Act are prospective in nature and therefore, the order of CIT(A), passed by following the binding judgments of the Hon'ble Juri ictional
High Court, cannot be set aside by the applying the amended provisions of Section 14A of the Act.
7. We note that the Mumbai Bench of the Tribunal has, in the case of Assistant
Commissioner of Income Tax- Circle 3(1)(1) Vs Bajaj Capital Ventures (P.) Ltd.: [2022]
140 taxmann.com 1 (Mumbai -Trib.)[29-06-2022) and also in the case of Assistant
Act 2022 shall apply from Assessment Year 2022-23 and onwards. Further, Hon'ble
Delhi High Court in the case of Principal Commissioner of Income-Tax (Central) 2 Vs.
M/s Era Infrastructure India Ltd: [ITA No. 204 of 2022, decided on 20.07.2022) has rejected the contention of the Revenue that amendments to Section 14A introduced by the Finance Act 2022 shall have retrospective effect. Accordingly, Ground No.1
raised by the Revenue is dismissed."
4.6 Respectfully, following the finding of the Tribunal (supra), we set aside the finding of the Ld. CIT(A) on the issue in dispute and delete the addition made by the Assessing Officer. The ground No. 1 and 2 of the appeal of the assessee are accordingly allowed.
Since there is no exempt income in this year also, and respectfully following the decision of the coordinate bench, we hold that the addition of Rs.
P a g e | 4
A.Y. 2017-18
JSW Infrastructure Ltd.
4,75,14,520/- u/s 14A r.w. Rule 8D is not justified, and the same is hereby deleted.
8. In the result, the appeal of the assessee is allowed.
Order pronounced in the open court on 22.05.2025. BEENA PILLAI
RENU JAUHRI
(न्यधनयक सदस्य/JUDICIAL MEMBER)
(लेखधकधर सदस्य/ACCOUNTANT MEMBER
Place: म ुंबई/Mumbai
दिन ुंक /Date 22.05.2025
अननकेत स ुंह र जपूत/ स्टेनो
आदेश की प्रनतनलनि अग्रेनित/Copy of the Order forwarded to :
1. अपीलार्थी / The Appellant
2. प्रत्यर्थी / The Respondent.
3. आयकर आयुक्त / CIT
4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT,
Mumbai
5. गार्ड फाईल / Guard file.
सत्यानित प्रनत ////
आदेशािुसार/ BY ORDER,
सहायक िंजीकार (Asstt.