SATISH M GUPTA,MUMBAI vs. ACIT 19(3), MUMBAI

The appeal filed by the assessee is directed against the order dated 12.10.2012 passed by the Commissioner of Income Tax (Appeals)-30, Mumbai [hereinafter referred to as the “CIT(A)”] relevant to the assessment year 2009-10.

The issue involved in this appeal is disallowance made u/s. 14A of the Income Tax Act, 1961 ( in short “the Act”). The learned counsel appearing for the assessee submitted that the assessee did not claimed any expenditure against any of the income and hence the question of disallowing expenditure relatable to the exempt income as provisions of section 14A of the Act does not arose.

On the contrary the learned DR submitted that the provision of section 14A shall be applicable even if the assessee is not claimed any expenditure. 4. We are unable to accept the contention of learned DR. The provision of section 14A of the Act prevents the assessee from claiming expenditure relatable to the exempt income against taxable income. Since the assessee has not claimed any expenditure therefore there is merit in the contention of the assessee that the provision u/s. 14A of the Act is not applicable to the case of the assessee. Accordingly, the order passed by the learned CIT(A) is set aside and the Assessing Officer is directed to delete the additions made u/s. 14A of the Act. 5. In result the appeal filed by the Assessee is allowed. A.Y.2009-10 Order pronounced in the open court on 4th May, 2016.