HCL TRAINING & STAFFING SERVICES PRIVATE LIMITED,NEHRU PLACE vs. CIRCLE 11(1), DELHI, I P ESTATE, NEW DELHI

ITA 7383/DEL/2025Status: DisposedITAT Delhi11 March 2026AY 2017-18Bench: SHRI VIMAL KUMAR (Judicial Member), SHRI AMITABH SHUKLA (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the Hon'ble Delhi High Court's decisions in Sahara India Financial Corporation Ltd. and Era Infrastructure India Ltd. indicate that Section 14A invocation is not permissible if no exempt income is offered. The Explanation to Section 14A of the Finance Act, 2022, was held to be prospective. Therefore, no addition under Section 14A read with Rule 8D was liable.

What were the facts?

The assessee's appeal is against the CIT(A)'s order upholding the disallowance of ₹60,06,137/- under Section 14A read with Rule 8D(ii). The assessee claimed no exempt income was earned during the assessment year 2017-18.

What were the issues?

Whether Section 14A of the Income Tax Act can be invoked when no exempt income is earned by the assessee, and whether the Explanation to Section 14A is retrospective or prospective.

Which sections of the Income-tax Act were involved?

Section 14A,Section 8D,Section 143(3),Section 143(2),Section 234B,Section 234C

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, DELHI BENCH ‘E’ NEW DELHI

Before: SHRI VIMAL KUMAR & SHRI AMITABH SHUKLA

For Appellant: Shri Aditya Vohra, Advocate
For Respondent: Ms. Ankush Kalra, Senior DR
Hearing: 19.02.2026Pronounced: 11.03.2026

PER AMITABH SHUKLA, AM This appeal by the assessee is directed against the order of learned CIT(A), National Faceless Appeal Centre, Delhi dated 25th September, 2025 pertaining to assessment year 2017-18. 2. The only issue in this appeal of the assessee is as regards the action of the learned CIT(A) in upholding the disallowance of `60,06,137/- made by the Assessing Officer under Section 14A of the Income-tax Act, 1961 (in short ‘the Act’) read with Rule 8D(ii) of the Income-tax Rules, 1962 (in short ‘the Rules’). The assessee has raised following grounds of appeal”-

ITA-7383/Del/2025

1.

That on the facts and circumstances of the case and in law, the order dated 25.09.20

The order continues below.

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