ACIT, CIRCLE- 13(2), NEW DELHI vs. JINDAL SAW LTD., DELHI

PDF · subscribers
ITA 1248/DEL/2018Status: DisposedITAT Delhi21 December 2021AY 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 upheld the deletion of the disallowance made under Section 14A. It followed the jurisdictional High Court's decision that Section 14A is not applicable if no exempt income is earned.

What were the facts?

The Assessing Officer made a disallowance under Section 14A read with Rule 8D. The assessee did not earn any exempt income during the relevant assessment year. The CIT(A) deleted the disallowance.

What were the issues?

Whether disallowance under Section 14A is permissible when no exempt income has been earned 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

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, DELHI “C” BENCH: NEW DELHI

Before: SHRI C. N. PRASAD & SHRI PRADIP KUMAR KEDIA

Hearing: 21.12.2021Pronounced: 21.12.2021

ORDER PER C. N. PRASAD, JM :

This appeal is filed by the Revenue against the order of the Ld.CIT(A)-36, dated 14/1/2017 New Delhi, for assessment year 2014-15 in deleting the disallowance made u/s 14A of the Act.

2.

In spite of issues of service, none appeared on behalf of the assessee nor any adjournment was moved. However, since the issue in appeal is settled by various judicial pronouncements, this appeal is disposed off on hearing the Ld. DR.

3.

Ld. DR submits that the Assessing Officer while completing the assessment u/s 143(3) of the Act computed the disallowance u/s 14A read with Rule 8D at Rs. 15,36,96,811/-. The Ld. DR submits that on appeal the Ld.CIT(A)’s deleted the disallowance on the ground that during the relevant assessment year, the assessee did not earn any exempt income. Ld. DR vehemently supported the orders of the Assessing Officer in making disallowance u/s 14A read with Rule 8D of the Act.

4. Heard Ld. DR and perused the orders of the authorities below. It is not in dispute that the assessee did not earn any exempt income during the current Assessment Year. The Ld.CIT(A)’s deleted the disallowance made u/s 14A read with Rule 8D following the decision of the Jurisdictional High Court in the case of Chem Invest Ltd. Vs. CIT [61 Taxman.com 118] wherein it has been held that provisions of Section 14A will not apply if no exempt income is received during the relevant previous year. Since Ld.CIT(A)’s followed the decision of the Jurisdictional High Court and deleted the disallowance made u/s 14A read with Rule 8D as the assessee did not receive any exempt income during the previous year, we do not find any infirmity in the order passed by the Ld.CIT(A). Grounds raised by the Revenue are dismissed.

4.

In the result, appeal of the Revenue is dismissed.

Above decision was pronounced on conclusion of Virtual Hearing on 21st December, 2021.

More judgments on Section 14A

All 15,875 judgments and leading authorities on Section 14A →

Recent GST High Court judgments

Search GST case law →