M/S NCG ENTERPRISES LTD.,LUDHIANA vs. ACIT, C-7 , LUDHIANA

आदेश/Order

Per Sanjay Garg, Judicial Member :

The present appeal has been preferred by the

assessee against the order dated 16.03.2018 of the

Commissioner of Income Tax (Appeals)-3, [hereinafter referred

to as CIT(A)],Ludhiana.

disallowance of expenditure incurred for earning of tax

exempt income under the provisions of Section 14A of the

Income Tax Act,1961. At the outset, ld. counsel for the

assessee has submitted that the assessee during the year

did not earn any tax exempt income. He, therefore, has

submitted that the issue is squarely covered by the

various decisions of the higher Courts including the

jurisdictional Hon'ble Punjab & Haryana High Court in the

ITA-613/CHD/2018 Page 2 of 2

case of CIT Faridabad v. Lakhani Marketing INC 226

Taxmann 45 (P&H) and also by the decision of Hon'ble

Delhi High Court in case of Cheminvest Ltd. Vs. CIT

(2015) 378 ITR 33 (Del) and further of the Hon'ble

Allahabad High Court in the case of CIT Vs. M/s Shivam

Motors (P) Ltd. (2014) 272 CTR 277 (All). In view of this,

the issue is squarely covered in favour of the assessee.

Hence, respectfully following the proposition of law laid

down by various High Courts, disallowance, if any, made

by the lower authorities in this case under the provisions

of Section 14A of the Act is ordered to be deleted.

Order Pronounced in the Open Court on 11.01.2019.

Sd/- Sd/- (अ�नपूणा� गु�ता) (संजय गग�) (ANNAPURNA GUPTA) (SANJAY GARG) लेखा सद�य/ Accountant Member �या�यक सद�य/ Judicial Member “Poonam” आदेश क� ��त�ल�प अ�े�षत/ Copy of the order forwarded to : अपीलाथ�/ The Appellant 1. ��यथ�/ The Respondent 2. आयकर आयु�त/ CIT 3. आयकर आयु�त (अपील)/ The CIT(A) 4. �वभागीय ��त�न�ध, आयकर अपील�य आ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड� फाईल/ Guard File 6.

आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar