PRAVEEN BUILDING CONSTRUCTION COMPANY PVT. LTD.,NEW DELHI vs. ITO, WARD- 20(1), NEW DELHI

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ITA 1223/DEL/2018Status: DisposedITAT Delhi25 July 2018AY 2013-143 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that if an assessee has not earned any exempt income during the year, no disallowance can be made under Section 14A. The CIT(A) was not justified in confirming the disallowance.

What were the facts?

The assessee's appeal concerns assessment year 2013-14. The Assessing Officer disallowed Rs. 37,019 under Section 14A read with Rule 8D, which was upheld by the CIT(A).

What were the issues?

Whether disallowance under Section 14A is permissible when the assessee has not earned any exempt income.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, DELHI BENCHES : SMC : NEW DELHI

Before: SHRI R.S. SYAL

For Appellant: Shri Shailesh Gupta, Advocate
For Respondent: Shri Atiq Ahmed, Sr. DR
Hearing: 24.07.2018Pronounced: 25.07.2018

Date of Hearing : 24.07.2018 Date of Pronouncement : 25.07.2018 ORDER This appeal filed by the assessee arises out of the order passed by the CIT(A) on 18.01.2018 in relation to the assessment year 2013-14.

2.

The Assessing Officer has made a disallowance of Rs.37,019/- by invoking the provisions of Rule 8D read with section 14A which has been upheld by the ld.CIT(A). The assessee is in appeal against such confirmation of addition.

3.

Having heard both the sides and perused the relevant material on record, it is observed from the assessment order that no exempt income was earned by the assessee during the year. The Hon’ble jurisdictional High Court in Cheminvest Ltd. vs. CIT (2015) 378 ITR 33 (Del) and CIT vs. Holcim India P. Ltd. (2014) 90CCH 081-Del-HC has held that if there is no exempt income, there can be no question of making any disallowance u/s 14A. In view of these precedents, which are squarely applicable to the facts of the instant case, I hold that the ld. CIT(A) was not justified in confirming the disallowance. We, therefore, order to delete the addition.

4.

In the result, the appeal is allowed.

The decision was pronounced in the open court on 25th July, 2018.

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