DCIT, NEW DELHI vs. M/S. WAVE INFRATECH PVT. LTD., NOIDA

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ITA 5215/DEL/2015Status: DisposedITAT Delhi02 November 2017AY 2011-122 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 no exempt income is earned and the genuineness of expenditure is not in doubt, no disallowance can be made under Section 14A. This decision followed the jurisdictional High Court's ruling in Cheminvest Ltd.

What were the facts?

The Revenue appealed against the deletion of disallowance made under Section 14A of the Income-tax Act. The assessee argued that no exempt income was earned in the relevant years.

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, IN THE INCOME TAX APPELLATE TRIBUNAL

Before: SHRI G.D. AGRAWAL, G.D. AGRAWAL & AND BEFORE SHRI & AND SHRI KULDIP SINGH SHRI KULDIP SINGHSHRI KULDIP SINGH SHRI KULDIP SINGH

For Appellant: Ms. Shefali Swaroop, CIT-DR
For Respondent: Shri Sanat Kapoor, Advocate
Hearing: 31.10.2017Pronounced: 02.11.2017

PER G.D. AGRAWAL, PER G.D. AGRAWAL, PRESIDENT PER G.D. AGRAWAL, PER G.D. AGRAWAL, PRESIDENT PRESIDENT :- PRESIDENT These two appeals by the Revenue for the assessment year 2011-12 and 2012-13 are directed against the order of learned CIT(A)- 30, New Delhi dated 22nd May, 2015.

2.

In both these appeals, the Revenue has raised only one common ground against the deletion of disallowance made by the Assessing Officer u/s 14A of the Income-tax Act, 1961.

3.

We have heard the arguments of both the sides and perused relevant material placed before us. It was pointed out by the learned counsel that there is no exempt income in any of the years under appeal and, therefore, the issue under consideration is squarely covered by the decision of Hon'ble Jurisdictional High Court in the case of Cheminvest Ltd. Vs. CIT – [2015] 378 ITR 33 (Delhi).

2 ITA-5215 & 5218/Del/2015

4.

Learned DR, on the other hand, relied upon the order of the Assessing Officer.

5.

After considering the facts of the case and arguments of both the sides, we agree with the contention of the learned counsel for the assessee that the issue is squarely covered in favour of the assessee by the decision of Hon'ble Jurisdictional High Court in the case of Cheminvest Ltd. (supra), 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.”

6.

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

7.

In the result, both the appeals of the Revenue are dismissed. Decision pronounced in the open Court on 02.11.2017.

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