ACIT, NEW DELHI vs. M/S. NUWAVE E- SOLUTIONS PVT. LTD., NEW DELHI

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ITA 5782/DEL/2012Status: DisposedITAT Delhi15 December 2015AY 2009-102 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 there is no exempt income, no disallowance under Section 14A can be made. Following the jurisdictional High Court's decisions, the disallowance made under Section 14A was deleted.

What were the facts?

The Revenue appealed against the deletion of an addition made under Section 14A. The addition was related to a disallowance of expenses amounting to Rs. 14 lakhs.

What were the issues?

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

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

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 CHANDRA MOHAN GARG SHRI CHANDRA MOHAN GARGSHRI CHANDRA MOHAN GARG SHRI CHANDRA MOHAN GARG

For Appellant: Shri Rakesh Gupta, Advocate and Shri Prakash Gupta, CA
For Respondent: Shri P. Dam Kanunjna, Senior DR
Hearing: 08.12.2015Pronounced: 15.12.2015

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 2009-10 is directed against the order of learned CIT(A)-XVI, New Delhi dated 31st July, 2012.

2.

The only ground raised by the Revenue is against deletion of addition made on account of disallowance u/s 14A amounting to `14 lakhs by the learned CIT(A).

3.

We have heard both the sides and perused relevant material placed before us. We find this issue to be covered in favour of the assessee by the decision of Hon'ble Jurisdictional High Court in the case of Cheminvest Limited Vs. CIT-VI in order dated 2nd September, 2015 and CIT-IV Vs. Holcim India P.Ltd. in ITA

1.

2 ITA-5782/Del/2012 No.486/2014 & 299/2014, order dated 5th September, 2014, 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 delete the disallowance made u/s 14A of the Act.

4.

In the result, the appeal of the Revenue is dismissed. Decision pronounced in the open Court on 15.12.2015.

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