Cheminvest Ltd. v. CIT

378 ITR 33High Court2015#24 most cited

What is Cheminvest Ltd. v. CIT authority for?

A disallowance under Section 14A of the Income-tax Act, 1961, for expenditure incurred in relation to exempt income cannot be made if the assessee has not earned any exempt income during the relevant previous year.

1,569

judgments rely on this decision, according to BharatTax’s citation analysis of 367,154 Indian tax judgments — from 2015 to 2026.

Also referred to as

Cheminvest Ltd. v. CIT · Section 14A disallowance · no exempt income · exempt dividend income · expenditure related to exempt income · Section 8D · Section 115JB · Income-tax Act 1961 · Delhi High Court

Also reported as

61 Taxmann.com 118234 Taxmann 761317 ITD 33281 CTR 447

Sections most often in play

Section 14ASection 143(3)Section 8DSection 115JBSection 250Section 1961Section 37(1)Section 143(2)
Read the full judgment

Issues it is cited on

disallowance u/s 14adisallowance under section 14asection 14asection 36(1)(iii)section 115jbrevenue expendituresection 37(1)section 37section 36previous yearscrutiny assessmentsection 115

Judgments citing Cheminvest Ltd. v. CIT

Arkis Enterprises Pvt Ltd, Mumbai vs. Income Tax Officer Ward 5(2)(3), Mumbai

In the result appeal filed by the assessee stands partly allowed

ITA 5113/MUM/2024[2012-13]Status: DisposedITAT Mumbai11 Dec 2024AY 2012-13

Bench: SMT BEENA PILLAI (Judicial Member)

For Appellant: RespondentFor Respondent: Ms. Pradnya Gholap (Sr. DR)
Section 115JSection 14Section 142Section 143Section 14ASection 250Section 250(6)Section 41(1)

…3rd limb of Rule 8D, we direct the Ld.AO to consider only such investments that yielded exempt income for the year under consideration. In support reliance was placed on the decision of Hon’ble Delhi High Court in case of Cheminvest Ltd vs CIT reported (2015) 378 ITR 33 and decision of Hon’ble Gujrat High Court in case of CIT vs Corrtech Eergy Ltd., reported in (2015) 372 ITR 97 . 6.3. Further we note that there is no relation of disallowance under Section 14A while computing the book profit under section 115JB. The reason is that explanation (1) of Section 115JB adjustment is to be worked out as clause (f) wher…

Assistant Commissioner Commissioner of Income Tax Corporate Circle 1 1, Chennai vs. Il and Fs Tamilnadu Power Company Limited, Chennai

In the result, the appeal of the revenue is dismissed

ITA 1716/CHNY/2024[2011-12]Status: DisposedITAT Chennai04 Dec 2024AY 2011-12

Bench: Shri Aby T Varkey & Shri Amitabh Shuklaआयकर अपील सं./ Ita No. 1716 /Chny/2024 निर्धारण वर्ा /Assessment Years: 2011-12 Assistant Commissioner Of Income Il & Fs Tamilnadu Power Company Tax, Limited, Corporate Circle-1(1), Old No.21, New No.2, Kpr Tower, Chennai 4Th Floor, Greams Road, S.O. Nungambakkam, Chennai-600 006. [Pan: Aabcf1176A] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) : Shri Ashwin, C.A अपीलार्थी की ओर से/ Assessee By प्रत्यर्थी की ओर से /Revenue By : Ms.Gowthami Manivasagam, Jcit सुनवाई की तारीख/Date Of Hearing : 23.09.2024 घोषणा की तारीख /Date Of Pronouncement : 04.12.2024

For Respondent: Ms.Gowthami Manivasagam, JCIT
Section 250

…accordance with contemporaneous law and judicial pronouncements on the matter. It was submitted that the decision of Hon’ble Special Bench of ITAT Delhi in the case of Cheminvest Ltd, relied upon by the Ld. AO, stands overruled by Hon’ble Delhi High Court in 378 ITR 33. The Appellant placed reliance upon the decision of Hon’ble Supreme Court in Chettinad Logistics 95 ITA No. 1716 /Chny/2024 :- 8 -: taxman.com 250 and Redington India Ltd 392 ITR 633 Hon’ble Madras High Court etc in support of its contentions. 9.0 We have heard the rival submissions in the light of material available on records. We have noted t…

Biswanath Hosiery Mills Ltd., Kolkata vs. ACIT, Cir. 4(2), Kolkata

In the result, the appeal of the assessee is allowed

ITA 470/KOL/2024[2017-18]Status: DisposedITAT Kolkata25 Nov 2024AY 2017-18

Bench: Shri Anikesh Banerjee & Shri Rakesh Mishraassessment Year: 2017-18

For Appellant: Shri Aayush Kedia, ARFor Respondent: Shri Mahare Yogesh Prabhakar, DR
Section 10(34)Section 143(2)Section 143(3)Section 14ASection 250

….) 2) ACIT v. Gold Rush Sales and Service Ltd, 156 taxmann.com 514 (Kolkata - Trib.) 3) Godrej & Boyce Manufacturing Co. Ltd. v. DCIT (Bombay High Court, 2010) 4) CIT v. Chettinad Logistics (P.) Ltd. [80 taxmann.com 221 (Madras HC)] 5) Cheminvest Ltd. v. CIT [378 ITR 33 (Delhi HC)] 6) CIT v. Shivam Motors (P.) Ltd. [97 DTR 81 (Allahabad HC)] 7) Joint Investments (P.) Ltd. v. CIT [59 taxmann.com 295 (Delhi HC)] 8) CIT vs Delite Enterprise (2009) (Bombay High Court) ITA No. 110 of 2009 (BomHC) 9) CIT vs. Corrtech Energy Pvt. Ltd. (2014) 223 Taxman 130 (Gujrat High Court) 10) CIT v. Winsome Textile Industries Ltd. […

The Dy. Commissioner of Income Tax Circle-4(1)(1), Ahmedabad vs. Suzlon Energy Ltd., Ahmedabad

In the result the Ground Nos

ITA 303/AHD/2023[2017-18]Status: DisposedITAT Ahmedabad12 Nov 2024AY 2017-18

Bench: Shri T.R. SENTHIL KUMAR (Judicial Member), Shri Makarand Vasant Mahadeokar (Accountant Member)

Section 115JSection 143(3)Section 14A

…d by the Board that the intention of the legislature was to disallow deductions on expenditures incurred for earning exempt income irrespective of the fact whether any such income has been earned during the said financial year or not. In Chemivest Ltd. v. CIT 317 ITR 33 (Delhi), the Hon'ble Delhi High Court while dealing with the same issue observed that the expression 'does not form part of the total income' in section14A envisages that there should be an actual receipt of income, which is not includible in the total income during the relevant previous year to disallow any expenditure incurred concerning the sai…

The Dy. Commissioner of Income Tax Circle-4(1)(1), Ahmedabad vs. Suzlon Energy Ltd., Ahmedabad

In the result the Ground Nos

ITA 302/AHD/2023[2016-17]Status: DisposedITAT Ahmedabad12 Nov 2024AY 2016-17

Bench: Shri T.R. SENTHIL KUMAR (Judicial Member), Shri Makarand Vasant Mahadeokar (Accountant Member)

Section 115JSection 143(3)Section 14A

…d by the Board that the intention of the legislature was to disallow deductions on expenditures incurred for earning exempt income irrespective of the fact whether any such income has been earned during the said financial year or not. In Chemivest Ltd. v. CIT 317 ITR 33 (Delhi), the Hon'ble Delhi High Court while dealing with the same issue observed that the expression 'does not form part of the total income' in section14A envisages that there should be an actual receipt of income, which is not includible in the total income during the relevant previous year to disallow any expenditure incurred concerning the sai…

Suzlon Energy Ltd., Ahmedabad vs. The Dy. Commissioner of Income Tax Circle-4(1)(1), Ahmedabad

In the result the Ground Nos

ITA 199/AHD/2023[2017-18]Status: DisposedITAT Ahmedabad12 Nov 2024AY 2017-18

Bench: Shri T.R. SENTHIL KUMAR (Judicial Member), Shri Makarand Vasant Mahadeokar (Accountant Member)

Section 115JSection 143(3)Section 14A

…d by the Board that the intention of the legislature was to disallow deductions on expenditures incurred for earning exempt income irrespective of the fact whether any such income has been earned during the said financial year or not. In Chemivest Ltd. v. CIT 317 ITR 33 (Delhi), the Hon'ble Delhi High Court while dealing with the same issue observed that the expression 'does not form part of the total income' in section14A envisages that there should be an actual receipt of income, which is not includible in the total income during the relevant previous year to disallow any expenditure incurred concerning the sai…

Suzlon Energy Ltd., Ahmedabad vs. The Dy. Commissioner of Income Tax Circle-4(1)(1), Ahmedabad

In the result the Ground Nos

ITA 198/AHD/2023[2016-17]Status: DisposedITAT Ahmedabad12 Nov 2024AY 2016-17

Bench: Shri T.R. SENTHIL KUMAR (Judicial Member), Shri Makarand Vasant Mahadeokar (Accountant Member)

Section 115JSection 143(3)Section 14A

…d by the Board that the intention of the legislature was to disallow deductions on expenditures incurred for earning exempt income irrespective of the fact whether any such income has been earned during the said financial year or not. In Chemivest Ltd. v. CIT 317 ITR 33 (Delhi), the Hon'ble Delhi High Court while dealing with the same issue observed that the expression 'does not form part of the total income' in section14A envisages that there should be an actual receipt of income, which is not includible in the total income during the relevant previous year to disallow any expenditure incurred concerning the sai…

Satidham Syntex Limited, Mumbai vs. The Assistant Commissioner of Income Tax, Circle 5(3)(1), Mumbai

In the result, the appeals

ITA 3611/MUM/2024[2017-18]Status: DisposedITAT Mumbai30 Oct 2024AY 2017-18

Bench: Smt. Beena Pillai & Shri Prabhash Shankarassessment Year: 2014-15 & Assessment Year: 2017-18

For Appellant: Shri Rakesh Joshi,CAFor Respondent: Shri Bhangepatil P.Ramesh,Sr.DR
Section 143(3)Section 14ASection 41Section 41(1)

…sioner Of Income Tax vs M/s. Chettinad Logistics Pvt. Ltd inter alia held that provision of section 14A is clearly relatable to the earning of actual income and not notional or anticipated income. Hon’ble Delhi Court in the case Cheminvest Ltd. v/s CIT, [215] 378 ITR 33 (Del.) has held Section 14A will not apply if no exempt income is received or receivable during the relevant previous year.” Again, SLP filed by the Department against the above judgement of Hon’ble Delhi Court was dismissed on merits by Hon’ble Supreme Court in April 2019. 5.1 As regards, invoking of Explanation by the ld.CIT(A), it may be stated…

Satidham Syntex Limited, Mumbai vs. Income Tax Officer-5(3)(2), Mumbai

In the result, the appeals

ITA 3610/MUM/2024[2014-15]Status: DisposedITAT Mumbai30 Oct 2024AY 2014-15

Bench: Smt. Beena Pillai & Shri Prabhash Shankarassessment Year: 2014-15 & Assessment Year: 2017-18

For Appellant: Shri Rakesh Joshi,CAFor Respondent: Shri Bhangepatil P.Ramesh,Sr.DR
Section 143(3)Section 14ASection 41Section 41(1)

…sioner Of Income Tax vs M/s. Chettinad Logistics Pvt. Ltd inter alia held that provision of section 14A is clearly relatable to the earning of actual income and not notional or anticipated income. Hon’ble Delhi Court in the case Cheminvest Ltd. v/s CIT, [215] 378 ITR 33 (Del.) has held Section 14A will not apply if no exempt income is received or receivable during the relevant previous year.” Again, SLP filed by the Department against the above judgement of Hon’ble Delhi Court was dismissed on merits by Hon’ble Supreme Court in April 2019. 5.1 As regards, invoking of Explanation by the ld.CIT(A), it may be stated…

Preethi John Muthoot, Thiruvanathapuram vs. DCIT/ Central Circle, Trivandrum

Appeal is allowed

ITA 904/COCH/2023[2020-21]Status: DisposedITAT Cochin23 Oct 2024AY 2020-21

Bench: Shri Satbeer Singh Godara & Shri Amarjit Singhpreethi John Muthoot Dcit, Central Circle - 1 Moothoot Centre, Punnen Road Aayakar Bhavan Vs. Thiruvananthapuram 695001 Kawdiar [Pan: Acrpj5145J] Trivandrum 695003 (Appellant) (Respondent)

For Appellant: Shri Sreenivasan, CAFor Respondent: Dr. S. Pandian, CIT-DR
Section 14ASection 250

…assessee having not derived any exempt income as per her books of account pertaining to the relevant previous year. This being the clinching admitted fact, case law in CIT v. Corrtech Energy Pvt. Ltd. [2015] 372 ITR 97 (Guj.); Cheminvest Ltd., vs. CIT [2015] 378 ITR 33 (Del.); PCIT vs. Avantha 2 Preethi John Muthoot Realty Ltd., [2024] 164 taxmann.com 376 (Cal.) and CIT vs. Chettinad Logistics (P) Ltd., [2018] 95 taxmann.com 250 (SC), have already settled this issue in assessee’s favour and against the department that the impugned sec.14A r.w. Rule 8D disallowance does not apply when no exempt income is derive…

M/S Gemwood (Divisionsof Gmd International), Ernakulam vs. The ACIT, Non-Corporate Circle 1(1), Kochi

Appeal is partly allowed and the SA

ITA 712/COCH/2023[2013-14]Status: DisposedITAT Cochin23 Oct 2024AY 2013-14

Bench: Shri Satbeer Singh Godara & Shri Amarjit Singh

For Respondent: Smt.V.Swarnalatha, Sr.DR
Section 139(1)Section 143(3)Section 14A

…s upheld in the CIT(A) order herein, the clinching fact which emerges at the outset is that the tax payer had not derived any exempt income and therefore, we quote [2015] CIT v. Corrtech Energy Pvt. Ltd. [2015] 372 ITR 97(Guj.)’ Cheminvest Ltd., v. CIT [2015] 378 ITR 33 (Del.); PCIT vs. Avantha Realty Ltd., {2024] 164 taxmann.com 376 (Cal.) to delete the same. The assessee succeeds in its first and foremost substantive ground. 3. The assessee's latter substantive ground challenging PF/ESI of Rs.48,217 is concerned, learned counsel vehemently submits that the same had been credited to the corresponding account be…

Kesar Terminals and Infrastructure Limited, Churchgate, Mumbai vs. Assistant Commissioner of Income Tax - 1(2)(1), Aayakar Bhavan, Mumbai

ITA 3995/MUM/2024[AY 2014-15]Status: DisposedITAT Mumbai23 Oct 2024

Bench: Shri Narender Kumar Choudhry & Shri Omkareshwar Chidara

Section 14ASection 14A(2)Section 250Section 80I

…AO is not satisfied with the Assessee after having regards to the books of the Assessee. Further, the Special Bench judgment in the case of Cheminvest Ltd. (supra) has been reversed by the Hon'ble Delhi High Court in the case of Cheminvest Ltd. vs. CIT (2015) 281 CTR 447 (Del.- Trib) wherein the Hon'ble High Court has laid down in para-no.23 clearly "that section 14A will not apply if no exempt income is received or receivable during the relevant previous year". 4. Admittedly in the instant case, admittedly the Assessee was having sufficient/more funds in the form of share capital reserves and surplus than the am…

Kesar Terminals and Infrastructure Limited, Churchgate, Mumbai vs. Deputy Commissioner of Income Tax - 1(2)(1), Aayakar Bhavan, Mumbai

ITA 3994/MUM/2024[AY 2017-18]Status: DisposedITAT Mumbai23 Oct 2024

Bench: Shri Narender Kumar Choudhry & Shri Omkareshwar Chidara

Section 14ASection 14A(2)Section 250Section 80I

…AO is not satisfied with the Assessee after having regards to the books of the Assessee. Further, the Special Bench judgment in the case of Cheminvest Ltd. (supra) has been reversed by the Hon'ble Delhi High Court in the case of Cheminvest Ltd. vs. CIT (2015) 281 CTR 447 (Del.- Trib) wherein the Hon'ble High Court has laid down in para-no.23 clearly "that section 14A will not apply if no exempt income is received or receivable during the relevant previous year". 4. Admittedly in the instant case, admittedly the Assessee was having sufficient/more funds in the form of share capital reserves and surplus than the am…

Sapphire Foods India Limited, Mumbai vs. DCIT, Circle 3(3)(1), Mumbai, Maharashtra

In the result, the Assessee’s appeal is allowed

ITA 3476/MUM/2024[AY 2021-22]Status: DisposedITAT Mumbai23 Oct 2024

Bench: Shri Narender Kumar Choudhry & Shri Ratnesh Nandan Sahayassessment Year: 2021-22

For Appellant: Ms. Aarti Sathe, A.R. a/wFor Respondent: Smt Sujatha P. Iyangar, Sr. AR
Section 14A

…Power Ltd (supra) also stands affirmed by the Hon’ble Apex High Court in CIT vs. Reliance Industries Ltd. (2010) 10 taxman.com 52/261 taxman.com 165/410 ITR 466. 8.4 We further observe that Hon’ble Delhi High Court in the case of Cheminvest Ltd. vs. CIT (14) 378 ITR 33 (Delhi) has held that 8 M/s. Sapphire Foods India Limited section 14A will not apply, if no exempt income is received or receivable during the relevant previous year. 8.5 We also observe that the Hon’ble Delhi High Court in the case of PCIT vs. Era Infrastructure (India) Ltd. (2022) 448 ITR 674 (Delhi) by considering the amendment brought in sec…

Income Tax Officer-11(1)(1), Mumbai, Churchgate vs. Ms. Saicharan Consultancy Pvt Ltd, Mumbai

In the result, the appeal of the Revenue is dismissed

ITA 3527/MUM/2024[2015-16]Status: DisposedITAT Mumbai22 Oct 2024AY 2015-16

Bench: Smt. Beena Pillai & Shri Prabhash Shankarassessment Year: 2015-16

For Appellant: Shri Jayeshkumar JainFor Respondent: Shri Bhangepatil Pushkaraj Ramesh
Section 143(3)Section 14A

…sioner Of Income Tax vs M/s. Chettinad Logistics Pvt. Ltd inter alia held that provision of section 14A is clearly relatable to the earning of actual income and not notional or anticipated income. Hon’ble Delhi Court in the case Cheminvest Ltd. v/s CIT, [215] 378 ITR 33 (Del.) has held Section 14A will not apply if no exempt income is received or receivable during the relevant previous year.” Again, SLP filed by the Department against the above judgement of Hon’ble Delhi Court was dismissed on merits by Hon’ble Supreme Court in April 2019. 4.1 Thus, in view of the discussions made above and respectfully placing r…

Asst. Commissioner of Income-Tax 6(1)(2), Mumbai vs. Incred Holdings Limited (Formerly Known As Kkr Capital Markets India Limited)., Mumbai

In the result, appeals filed by the assessee in I

ITA 4366/MUM/2024[2016-17]Status: DisposedITAT Mumbai17 Oct 2024AY 2016-17

Bench: Shri Narendra Kumar Billaiya, Hon’Ble & Shri Raj Kumar Chauhan, Hon’Ble

For Appellant: Shri Ajit Kumar Jain, A/RFor Respondent: Mr. R.A. Dhyani, CIT D/R & Shri Krishna Kumar, Sr. D/R
Section 14A

…aspect has observed: " 4. Having heard both the sides and perused the relevant material on record, we find that the legal position is no more res integra in view of the judgment of the Hon'ble jurisdictional High Court in the case Cheminvest Ltd v. CIT (2015) 378 ITR 33 (Del), wherein it has been held that if there is no exempt income, there can be no question of making any disallowance u/s 14A. Similar view has been taken by the Hon'ble jurisdictional High Court in CIT v. Holcim India P. Ltd. (2014) 90CCH 081-Del-HC. In view of these binding precedents providing for not making any disallowance u/s 14A in the abs…

Asst. Commissioner of Income-Tax 6(1)(2), Mumbai vs. Incred Holdings Limited (Formerly Known As Kkr Capital Markets India Limited)., Mumbai

ITA 4365/MUM/2024[2015-16]Status: DisposedITAT Mumbai17 Oct 2024AY 2015-16

Bench: Shri Narendra Kumar Billaiya, Hon'Ble & Shri Raj Kumar Chauhan, Hon'Ble

For Appellant: Shri Ajit Kumar Jain, A/RFor Respondent: Mr. R.A. Dhyani, CIT D/R & Shri Krishna Kumar, Sr. D/R
Section 14A

…aspect has observed: " 4. Having heard both the sides and perused the relevant material on record, we find that the legal position is no more res integra in view of the judgment of the Hon'ble jurisdictional High Court in the case Cheminvest Ltd v. CIT (2015) 378 ITR 33 (Del), wherein it has been held that if there is no exempt income, there can be no question of making any disallowance u/s 14A. Similar view has been taken by the Hon'ble jurisdictional High Court in CIT v. Holcim India P. Ltd. (2014) 90CCH 081-Del-HC. In view of these binding precedents providing for not making any disallowance u/s 14A in the abs…

Asst. Commissioner of Income-Tax 6(1)(2), Mumbai vs. Incred Holdings Limited (Formerly Known As Kkr Capital Markets India Limited)., Mumbai

ITA 4364/MUM/2024[2014-15]Status: DisposedITAT Mumbai17 Oct 2024AY 2014-15

Bench: Shri Narendra Kumar Billaiya, Hon'Ble & Shri Raj Kumar Chauhan, Hon'Ble

For Appellant: Shri Ajit Kumar Jain, A/RFor Respondent: Mr. R.A. Dhyani, CIT D/R & Shri Krishna Kumar, Sr. D/R
Section 14A

…aspect has observed: " 4. Having heard both the sides and perused the relevant material on record, we find that the legal position is no more res integra in view of the judgment of the Hon'ble jurisdictional High Court in the case Cheminvest Ltd v. CIT (2015) 378 ITR 33 (Del), wherein it has been held that if there is no exempt income, there can be no question of making any disallowance u/s 14A. Similar view has been taken by the Hon'ble jurisdictional High Court in CIT v. Holcim India P. Ltd. (2014) 90CCH 081-Del-HC. In view of these binding precedents providing for not making any disallowance u/s 14A in the abs…

Incred Holdings Limited, Mumbai vs. Assistant Commissioner of Income Tax Circle 6(3)(1), Mumbai

ITA 4254/MUM/2024[AY 2018-19]Status: DisposedITAT Mumbai17 Oct 2024

Bench: Shri Narendra Kumar Billaiya, Hon'Ble & Shri Raj Kumar Chauhan, Hon'Ble

For Appellant: Shri Ajit Kumar Jain, A/RFor Respondent: Mr. R.A. Dhyani, CIT D/R & Shri Krishna Kumar, Sr. D/R
Section 14A

…aspect has observed: " 4. Having heard both the sides and perused the relevant material on record, we find that the legal position is no more res integra in view of the judgment of the Hon'ble jurisdictional High Court in the case Cheminvest Ltd v. CIT (2015) 378 ITR 33 (Del), wherein it has been held that if there is no exempt income, there can be no question of making any disallowance u/s 14A. Similar view has been taken by the Hon'ble jurisdictional High Court in CIT v. Holcim India P. Ltd. (2014) 90CCH 081-Del-HC. In view of these binding precedents providing for not making any disallowance u/s 14A in the abs…

Incred Holdings Limited, Mumbai vs. Assistant Commissioner of Income Tax Circle 6(3)(1), Mumbai

ITA 4252/MUM/2024[AY 2017-18]Status: DisposedITAT Mumbai17 Oct 2024

Bench: Shri Narendra Kumar Billaiya, Hon'Ble & Shri Raj Kumar Chauhan, Hon'Ble

For Appellant: Shri Ajit Kumar Jain, A/RFor Respondent: Mr. R.A. Dhyani, CIT D/R & Shri Krishna Kumar, Sr. D/R
Section 14A

…aspect has observed: " 4. Having heard both the sides and perused the relevant material on record, we find that the legal position is no more res integra in view of the judgment of the Hon'ble jurisdictional High Court in the case Cheminvest Ltd v. CIT (2015) 378 ITR 33 (Del), wherein it has been held that if there is no exempt income, there can be no question of making any disallowance u/s 14A. Similar view has been taken by the Hon'ble jurisdictional High Court in CIT v. Holcim India P. Ltd. (2014) 90CCH 081-Del-HC. In view of these binding precedents providing for not making any disallowance u/s 14A in the abs…