RELIANCE POWER LIMITED,MUMBAI vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE, 15(3)(1), MUMBAI

ITA 3043/MUM/2023Status: DisposedITAT Mumbai22 January 2024AY 2015-161 pages
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What did the Tribunal hold?

The Tribunal held that disallowance under Section 14A is limited to the extent of exempt income earned. For AY 2018-19, in the absence of any exempt income, no disallowance under Section 14A is permissible. The amendment by the Finance Act 2022 was held to be prospective.

What were the facts?

For AY 2015-16, the assessee claimed business loss. The Assessing Officer (AO) made a significant disallowance under Section 14A, which was partly sustained by the CIT(A). For AY 2018-19, the assessee had no exempt income, but the AO made a disallowance under Section 14A, which was deleted by the CIT(A).

What were the issues?

Whether disallowance under Section 14A can exceed exempt income, and whether it is permissible when no exempt income is earned. Also, the applicability of amendments to Section 14A.

Which sections of the Income-tax Act were involved?

Section 14A,Section 115JB

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Cases cited in this judgment(6)Show list

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Income Tax Appellate Tribunal, “D” BENCH, MUMBAI

Before: SHRI PRASHANT MAHARISHI, AM & SHRI RAHUL CHAUDHARY, JM

For Appellant: Mr. Jitendra Sanghavi C A
For Respondent: Ms Sanyogita Nagpal CIT DR
Hearing: 08.01.2024Pronounced: 22.01.2024

Heard together (3 matters)

ITA No. 3043/Mum/2023
ITA no 3044/Mum/2023
ITA No 3423/Mum/2023

Read from the judgment's own cause title. This page is filed under one of them.

Per bench :-

1) For assessment year 2015 – 16 , ITA number 3043/M/2022 is filed by Reliance Power Ltd (the assessee appellant) and ITA number 3424/M/2023 is filed by the Deputy Commissioner Of Income Tax – 15 (3) (1), Mumbai (the learned assessing officer/AO) again

The order continues below.

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