DCIT, NEW DELHI vs. M/S. P.P. JEWELLERS PVT. LTD., DELHI

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ITA 1708/DEL/2015Status: DisposedITAT Delhi26 December 2017AY 2012-132 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 upheld the CIT(A)'s order, following the jurisdictional High Court's decision in Cheminvest Ltd. The court held that no disallowance under Section 14A can be made if no exempt income is earned and the expenditure is genuine.

What were the facts?

The Revenue appealed against the deletion of disallowance under Section 14A by the CIT(A). The disallowance was made for the assessment years 2011-12 and 2012-13.

What were the issues?

Whether disallowance under Section 14A is permissible when the assessee has not earned any exempt income and the genuineness of expenditure is not in doubt.

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, IN THE INCOME TAX APPELLATE TRIBUNAL

Before: SHRI G.D. AGRAWAL, G.D. AGRAWAL & AND BEFORE SHRI & AND SMT. BEENA A. PILLAI SMT. BEENA A. PILLAISMT. BEENA A. PILLAI SMT. BEENA A. PILLAI

For Appellant: Smt. Paramita Tripathy, CIT-DR
For Respondent: Shri R.R. Singla, CA
Hearing: 21.12.2017Pronounced: 26.12.2017

PER G.D. AGRAWAL, PER G.D. AGRAWAL, PRESIDENT PER G.D. AGRAWAL, PER G.D. AGRAWAL, PRESIDENT PRESIDENT :- PRESIDENT These appeals by the Revenue for the assessment years 2011-12 & 2012-13 are directed against the order of learned CIT(A)-29, New Delhi dated 12th January, 2015.

2.

The only ground raised in both these appeals is against the deletion of disallowance u/s 14A amounting to `28,39,540/- and 32,53,860/-.

3.

We have heard the arguments of both the sides and perused relevant material placed before us. We find that learned CIT(A) deleted the disallowance u/s 14A on the ground that there was no exempt income. We find this issue to be squarely covered in favour of the assessee by the decision of Hon'ble Jurisdictional High Court in the 2 ITA-1707 & 1708/Del/2015 case of Cheminvest Ltd. Vs. CIT – [2015] 378 ITR 33 (Delhi), wherein their Lordships held as under :-

1.

“Held, that no exempted income was earned by the assessee in the relevant assessment year and since the genuineness of the expenditure incurred by the assessee was not in doubt, no disallowance could be made under section 14A.”

4.

Respectfully following the above decision of Hon'ble Jurisdictional High Court, we uphold the order of learned CIT(A) and dismiss both the appeals filed by the Revenue.

5.

In the result, both the appeals of the Revenue are dismissed. Decision pronounced in the open Court on 26.12.2017.

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