ACIT, CIRCLE-11(2), NEW DELHI vs. HINDUSTAN THERMAL PROJECT LTD, NEW DELHI

PDF · subscribers
ITA 7862/DEL/2018Status: DisposedITAT Delhi20 December 2021AY 2013-144 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 since the assessee did not claim any exempt income, no disallowance under Section 14A is permissible. This is supported by various High Court and Supreme Court judgments.

What were the facts?

The Revenue appealed against the CIT(A)'s order which granted relief to the assessee. The issue was the addition of Rs. 24,06,52,000/- on account of disallowance under Section 14A.

What were the issues?

Whether disallowance under Section 14A is permissible when the assessee has not claimed any exempt income.

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(3)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 BENCH: ‘C’: NEW DELHI

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

For Respondent: Shri T. Kipgen , CIT(DR)
Hearing: 20.12.2021Pronounced: 20.12.2021

The captioned appeal has been filed by the Revenue against the order passed by the Commissioner of Income Tax (Appeals)-35, New Delhi, (“CIT”, for short) dated 04.09.2018 arising from the Assessment Order passed by the Assessing Officer under Section 143(3) of the Income Tax Act, 1961, (“the Act”, for short) dated 29.03.2016 concerning Assessment Year 2013-14.

ITA No.-7862/Del/2018 Hindustan Thermal Project Ltd. 2 The issue involved is addition of Rs. 24,06,52,000/- confirmed by the CIT(A) on account of disallowance u/s 14A of the Act.

3.

Aggrieved by the relief granted by the revenue of CIT(A), the revenue preferred appeal before the Tribunal,

4.

The Ld. CIT(DR) for Revenue relied upon the findings of the AO.

5.

None appeared for the assessee.

6.

We have carefully perused the orders of the lower authorities. At the outset, we note that the assessee has not claimed any exempt income. Therefore, no disallowance is permissible in view of the decision of the Hon’ble Gujarat High Court in the case of CIT vs. Corrtech Energy P. Ltd. 372 ITR 97 (Guj.). In another judgment in the case of CIT vs. Vision Finstock Ltd. Tax Appeal No. 486 of 2017 dated 31.07.2017 the Hon’ble Gujarat High Court has once again expressed the similar view and held that disallowance of expenditure in terms of Section 14A r.w. Rule 8D cannot exceed the exempt income itself. It is noticed that SLP(Civil) [Diary No. 13152/2018] filed by the Revenue against the judgment of the Hon’ble Gujarat High Court in Vision Finstock Ltd. (supra) has been dismissed on merits by the Hon’ble Supreme Court vide order dated 07.05.2018. The reference is also made to the decision of Hon’ble Supreme Court of India in CIT vs. Chettinad Logistics (P.) Ltd. (2018) 95 taxmann.com 250 (SC). Similar view has been expressed by the Hon’ble Delhi High Court in Chemivest Ltd. Vs. CIT 61 Taxmann.com 118 (Delhi). Thus, in the light of judicial precedents noted above, no ITA No.-7862/Del/2018 Hindustan Thermal Project Ltd. disallowance is called for under s.14A of the Act. Hence, we see no error in the first appellate order and thus, decline to interfere.

7.

In the result, captioned appeal by Revenue is dismissed.

Order pronounced in the open court on _ 20 /12/2021.

More judgments on Section 14A

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

Recent GST High Court judgments

Search GST case law →