ACIT, CENTRAL CIRCLE- 20, NEW DELHI vs. AMBIENCE PVT. LTD., NEW DELHI

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ITA 7185/DEL/2017Status: DisposedITAT Delhi19 October 2020AY 2013-142 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 if an assessee does not claim any exempt income, no disallowance can be made under Section 14A of the Income Tax Act. The CIT(A)'s deletion of the disallowance was upheld.

What were the facts?

The assessee company reported significant investments. The Assessing Officer disallowed expenses under Section 14A, citing the lack of bifurcation for expenses related to exempt income. The CIT(A) deleted this disallowance.

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

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Income Tax Appellate Tribunal, DELHI BENCH “A”: NEW DELHI

Before: SHRI H.S.SIDHU & SHRI PRASHANT MAHARISHI

For Appellant: Shri Raj Kumar Gupta, CA, Shri Sumit Goel, CA
For Respondent: Shri Vipul Kashyap, Sr. DR, Shri Raj Kumar Gupta, CA, Shri Sumit Goel, CA
Hearing: 15/10/2020Pronounced: 19/10/2020

O R D E R PER PRASHANT MAHARISHI, A. M.

1.

This is an appeal filed by the ld ACIT, Central Circle 20, New Delhi (ld AO) for AY 2013-14 against the order of the ld CIT(A)-27, New Delhi dated 19.09.2017 raising the solitary ground of against deletion of disallowance u/s 14A of the Act as under:- “1. That the ld CIT(A) erred in law and on facts in deleting the addition of Rs. 24368923/- made on account of disallowance of expenses u/s 14A without appreciating the facts and circumstances of the case that the assessee is not able to bifurcate the expenses incurred on exempt income and taxable income. Also assessee is not maintaining separate a/c for exempt income and taxable income.”

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