M/S HINDUSTAN THERMALPROJECTS LTD.,,NEW DELHI vs. DCIT,, NEW DELHI

This appeal by the assessee is preferred against the order of the Commissioner of Income Tax [Appeals] -33, New Delhi dated 12.01.2017 pertaining to assessment year 2012-13.

The solitary grievance of the assessee is that the CIT(A) erred in confirming the disallowance made by the Assessing Officer u/s 14A of the Income-tax Act, 1961 [hereinafter referred to as 'the Act' for short] read with Rule 8D of the Income tax Rules, 1962.

Facts emanating from the assessment order show that during the course of scrutiny assessment proceedings, the Assessing Officer noticed that the assessee has made investment in shares amounting to Rs. 6.47 crores. The Assessing Officer was of the firm belief that provisions of section 14A r.w.r 8D squarely apply and invoking the provisions of section 14A r.w.r 8D, the Assessing Officer computed the disallowance at Rs. 1,76,40,848/-.

The assessee carried the matter before the ld. CIT(A) but without any success.

Before us, the ld. counsel for the assessee stated that during the year under consideration, the assessee has not received any exempt income and, therefore, no disallowance is to be made u/s 14A of the Act.