ACIT., CIRCLE-5(1), HYDERABAD vs. PENNA CEMENT INDUSTRIES LIMITED, HYDERABAD

ITA 1084/HYD/2024Status: DisposedITAT Hyderabad21 January 2026AY 2018-1962 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s decision to delete the disallowance under Section 14A, as no exempt income was earned by the assessee during the year. It also upheld the deletion of the disallowance of Section 80G deduction for CSR donations, finding no prohibition for such claims.

What were the facts?

The revenue appealed against the deletion of additions made by the Assessing Officer (AO) concerning disallowance under Section 14A and deduction under Section 80G. The assessee claimed that no exempt income was earned, making Section 14A inapplicable, and that CSR donations were eligible for Section 80G deduction.

What were the issues?

Whether disallowance under Section 14A is permissible without earning exempt income, and whether CSR donations are eligible for deduction under Section 80G.

Which sections of the Income-tax Act were involved?

Section 14A,Section 80G,Section 143(3),Section 144B,Section 68,Section 80-IA,Section 37(1)

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Heard together (2 matters)

I.T.A. NO.1083/HYD/2024
I.T.A. NO.1084/HYD/2024

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IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad 'B' Bench, Hyderabad Before Shri Manjunatha G., Accountant Member and Shri Ravish Sood, Judicial Member (Hybrid Hearing) INCOME TAX APPEAL NOS./I.T.A. NO.1083/HYD/2024 (Assessment Year:2017-18) Assistant Commissioner of Income Tax, Circle-5(1), Hyderabad. (Appellant) VS. Penna Cement Industries Limited, Hyderabad. PAN: AABCP2290D (Respondent) INCOME TAX APPEAL NOS./I.T.A. NO.1084/HYD/2024 (Assessment Year:2018-19) Assistant Commissioner of Income Tax, Circle-5(1), Hyderabad. (Appellant) VS. Penna Cement Industries Limited, Hyderabad. PAN: AABCP2290D (Respondent) Represented by Assessee : Shri Sourabh Soparkar, Advocate Represented by Department : Dr. Narendra Kumar Naik, CIT-DR Date of Conclusion of Hearing : 11/11/2025 Date of Pronouncement : 21/01/2026 ORDER PER RAVISH SOOD, JM: The present appeals filed by the revenue are directed against the orders passed by the CIT(Appeals), dated 22.08.2024, which in turn arises from the respective orders passed by the Assessing Officer (for short, “AO”) under section 143(3) r.w section 144B of the Income-tax Act, 1961 (for short, “Act”), dated 26.09.2021 and 03/09/2021, for the AY 2017-18 and AY

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