ACIT NON CORPORATE CIRCLE 1(1), CHENNAI vs. NALLI TRUST, CHENNAI

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ITA 2543/CHNY/2017Status: DisposedITAT Chennai07 May 2018AY 2008-092 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 deletion of the disallowance made under Section 14A. The deletion was justified as the assessee had not claimed any exempt income, as per the jurisdictional High Court's ruling.

What were the facts?

The Revenue appealed against the deletion of a disallowance made under Section 14A by the Assessing Officer. The CIT(A) had deleted the disallowance because the assessee had not claimed any exempt income.

What were the issues?

Whether disallowance under Section 14A is permissible when no exempt income is claimed by the assessee.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, ‘B’ BENCH : CHENNAI

Before: SHRI ABRAHAM P. GEORGE & SHRI DUVVURU RL REDDY]

For Respondent: Shri. N. Devanathan, Advocate

आदेश / O R D E R

PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER

1.

In these appeals filed by the Revenue, which is directed against an order dated 31.07.2017 of ld. Commissioner of Income Tax (Appeals)-2, Chennai, it has taken altogether three grounds of which ground No.1 & 3 are general needing no specific adjudication.

2.

Vide its ground No.2, grievance raised by the Department is on deletion of a disallowance made by the ld. Assessing Officer u/s.14A of the & 2544/2017. :- 2 -: Income Tax Act, 1961 (in short ‘’the Act’’) for the impugned assessment years.

3.

We have perused the orders and heard the rival contentions. What we find is that ld. Commissioner of Income Tax (Appeals) had deleted the disallowance for a reason that assessee had not claimed any exempt income during the impugned assessment years. This has not been disputed by the ld. Departmental Representative. By virtue of the judgment of Hon’ble Jurisdictional High Court in the case of Redington India Ltd vs. Addl. CIT, 392 ITR 623, we are of the opinion that ld. Commissioner of Income Tax (Appeals) was justified in deleting the disallowance made u/s.14A of the Act. Ground No.2 is dismissed.

4.

In the result, appeals of the Department is dismissed. Order pronounced on Monday, the 7th day of May, 2018, at Chennai.

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