M/S WHITE STONE YARNS PVT. LTD.,LUDHIANA vs. ITO, W-7(2), LUDHIANA

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ITA 1072/CHANDI/2017Status: DisposedITAT Chandigarh15 June 2018AY 2012-133 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s order, agreeing that no disallowance under Section 14A is attracted if the assessee has not earned any income not forming part of the total income.

What were the facts?

The assessee appealed an order of the CIT(A) concerning disallowance under Section 14A. The assessee argued that no tax-exempt income was earned during the assessment year.

What were the issues?

Whether disallowance under Section 14A is attracted when the assessee has not earned any tax-exempt income.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(4)Show list

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Income Tax Appellate Tribunal, DIVISION BENCH ‘B’, CHANDIGARH

Before: SHRI SANJAY GARG & MS.ANNAPURNA GUPTA

Hearing: 23.03.2018Pronounced: 15.06.2018

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH ‘B’, CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS.ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA No.1072/Chd/2017 (Assessment Year : 2012-13) M/s White Stone Yarns Pvt. Ltd., Vs. The Income Tax Officer, 23, Ashok Vihar, Rishi Nagar, Ward 7(2), Ludhiana. Ludhiana. PAN: AAACW4476B (Appellant) (Respondent)

Appellant by : None Respondent by : Smt.Chanderkanta, Addl.CIT Date of hearing :23.03.2018 Date of Pronouncement :15.06.2018

ORDER Per Sanjay Garg, Judicial Member :

This appeal has been preferred by the assessee against

the order of Ld. Commissioner of Income Tax (Appeals)-4,

Ludhiana (hereinafter referred to as (‘Ld.CIT (Appeals)’

dated 3.4.2017, passed u/s 250(6 of the Income Tax Act,

1961 (in short ‘the Act’) in Appeal No.53/ROT-

106/IT/CIT(A)-4/LDH/2015-16 relating to assessment year

2012-13.

2.

The only issue involved in this appeal is relating to the

disallowance made u/s 14A of the Income-tax Act, 1961 (in

short 'the Act') read with Rule 8D(2)(ii) of the I.T. Act.

3.

At the outset, Ld. Counsel for the assessee has invited

our attention to the impugned order of the CIT(A) and

pointed out that for the impugned assessment year there

was no tax exempt income earned by the assessee. The Ld.

2 ITA No.1072/Chd/2017 AY: 2012-13

CIT(A) following the principles laid down by the Hon'ble

Jurisdictional High Court of Punjab & Haryana in the case

of ‘CIT, Faridabad Vs. Lakhani Marketing Inc.’ 226 Taxman

45 (P&H) deleted the additions made by the Assessing

officer on this issue. The Ld. counsel has further submitted

that the issue is now squarely covered by the numerous

decisions of the various High Courts including that of the

Jurisdictional High Court of Punjab and Haryana in the case

of ‘CIT Vs. Winsome Textiles’ (2009) 319 ITR 204 (P&H),

Hon'ble Delhi High Court in the case of ‘Cheminvest Ltd Vs.

ITO’ (2015) 378 ITR 33 (Delhi) and of the Hon'ble Gujarat

High Court in the case of ‘Corrtech Energy P. Ltd. (2014) 45

Taxman.com 116’ and further of the Hon'ble Allahabad High

Court in the case of ‘CIT Vs. M/s Shivam Motors (P) Ltd’

(2014) 272 CTR (All) 277 and various other case laws. In all

the above referred to case laws, the Hon'ble High Courts have

been unanimous to hold that no disallowance is attracted u/s

14A of the Act in case the assessee has not earned any income

not forming part of the total income.

4.

In view of the above discussion, we do not find any

infirmity in the order of the CIT(A), the same is therefore

upheld.

5.

In the result the appeal of the Revenue is hereby

dismissed.

Order pronounced in the open court on 15.06.2018

Sd/- Sd/-

(ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER

3 ITA No.1072/Chd/2017 AY: 2012-13

Dated : 15th June, 2018 *Rati* Copy to: 1. The Appellant 2. The Respondent 3. The CIT(A) 4. The CIT 5. The DR Assistant Registrar, ITAT, Chandigarh

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