ELECTRO INVESTMENT PRIVATE LIMITED,MUMBAI vs. INCOME TAX OFFICER 6(2)(3), MUMBAI

Assessee by : Shri Pavan Kumar Revenue by : Shri Asif Karmali Date of Hearing 18.02.2025 Date of Pronouncement 20.02.2025 आदेश / O R D E R PER RENU JAUHRI [A.M.] :- This appeal is filed by the assessee against the order of the Learned Additional/ Joint Commissioner of Income-tax (Appeals), Agra [hereinafter referred to as “ACIT(A)”] dated 30.12.2024 passed u/s. 250 of the Income-tax Act, 1961 [hereinafter referred to as “Act”] for Assessment Year [A.Y.] 2017-18.

A.Y. 2017-18 Electro Investment Pvt. Ltd. “1. The learned Commissioner of Income Tax(A) erred in law and on facts confirming the disallowance of Rs.21,64,695/- being disallowance u/s.14A r.w. Rule 8D of Income tax Rules.

2. The learned Commissioner of Income Tax(A) ought to have considered that the disallowance u/s.14A relates to expenses claimed by the Appellant incurred against exempted income of the Appellant Company earned during the year under consideration.

3. The learned Commissioner of Income Tax(A) ought to have considered that the total income claimed as exempted income by the Appellant during the year under consideration is only Rs.1,17,441/- and therefore if at all any disallowance is required to be made towards expenses incurred on earning the exempted income, it should have been restricted to the extent of income claimed as exempt.

4. The Appellant submits that out of the accumulated Reserves and capital of the company only, the Appellant company had invested in strategic investment in their group company, which did not earn any income at all and therefore when the expenditure incurred is NIL against exempted income arrived, the disallowance as per Rule 8D of Income tax Rules is not justifiable.

5. For the above and any other Grounds that may be advanced at the time of hearing, the Appellant prays that, the Appeal be allowed.”