DCIT, NEW DELHI vs. M/S. JAYPEE COMMODITIES LTD., NEW DELHI
In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal held that if there is no exempt income, no disallowance under Section 14A can be made. Following jurisdictional High Court decisions, the disallowance was deleted.
What were the facts?
The Revenue appealed against the deletion of disallowance of expenditure under Section 14A. The assessee argued that since no dividend income was earned, Section 14A was not applicable.
What were the issues?
Whether disallowance under Section 14A is permissible when the assessee has earned no exempt income.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Cases cited in this judgment(2)Show listHide list
Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.
- Cheminvest Ltd. v. CIT1,569 citing378 ITR 33 · 2015 · HC · Read judgment
- CIT v. Holcim India Pvt. Ltd.128 citing272 CTR 282 · 2014 · HC
Income Tax Appellate Tribunal, IN THE INCOME TAX APPELLATE TRIBUNAL
Before: SHRI G.D. AGRAWALG.D. AGRAWAL & AND BEFORE SHRI G.D. AGRAWALG.D. AGRAWAL & AND SHRI KULDIP SINGH SHRI KULDIP SINGHSHRI KULDIP SINGH SHRI KULDIP SINGH
PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP :- PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP This appeal by the Revenue for the assessment year 2010-11 is directed against the order of learned CIT(A)-30, New Delhi dated 16th February, 2015.
The only ground raised by the Revenue is against the deletion of disallowance of expenditure under Section 14A read with Rule 8D.
We have heard the arguments of both the sides and perused the material placed before us. At the time of hearing before us, the learned counsel for the assessee has pointed out that the assessee has earned no dividend income during the year under consideration. Thus, there was no exempt income. Therefore, Section 14A cannot be pressed into operation. We find this issue to be covered in favour of 2 ITA-4090/Del/2015 the assessee by the decision of Hon'ble Jurisdictional High Court in the case of Cheminvest Limited Vs. CIT-VI – [2015] 378 ITR 33 (Delhi) and CIT Vs. Holcim India P.Ltd. – [2014] 272 CTR 282 (Delhi), wherein Hon'ble Jurisdictional High Court has held that if there is no exempt income, then no disallowance u/s 14A of the Act can be made. Admittedly, in the case of the assessee, there is no exempt income. Therefore, respectfully following the above decisions of Hon'ble Jurisdictional High Court, we uphold the order of learned CIT(A) and delete the disallowance of `30,60,000/- made by the Assessing Officer u/s 14A read with Rule 8D. The ground raised by the Revenue is thus dismissed.
In the result, the appeal of the Revenue is dismissed. Decision pronounced in the open Court on 10.01.2017.
More judgments on Section 14A
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- M/S American Express Bank Ltd., Mumbai vs The Jt DIT (It)1(1), MumbaiITA 9414/MUM/2004[2000-2001]Status: Disposed8 Oct 2026AY 2000-2001
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