Cheminvest Ltd. v. ITO

121 ITD 318Income Tax Appellate Tribunal2009#228 most cited

What is Cheminvest Ltd. v. ITO authority for?

Disallowance of expenses under Section 14A of the Income Tax Act can be made even when no exempt income has been earned or received by the assessee.

338

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2015 to 2026.

Also referred to as

Cheminvest Ltd. v. ITO · Section 14A · disallowance of expenses · exempt income · no exempt income earned · Section 115JB · expenditure for exempt income · ITAT Special Bench · Delhi Tribunal · 121 ITD 318

Also reported as

317 ITR 86124 TTJ 577

Sections most often in play

Section 14ASection 143(3)Section 37(1)Section 115JBSection 1962Section 143(2)Section 1961Section 250

Issues it is cited on

disallowance u/s 14asection 14adisallowance under section 14asection 115jbprevious yearcompanytransfersection 14indiabusinesstotal incomesection 143

Judgments citing Cheminvest Ltd. v. ITO

Dalmia (Bros) Pvt. Ltd., New Delhi vs. ITO, Ward-7(2), New Delhi

In the result, the Appeal filed by the assessee is dismissed

ITA 380/DEL/2019[2014-15]Status: DisposedITAT Delhi09 Feb 2024AY 2014-15

Bench: Her As Additional Ground Of Appeal Reading As Under :-

Section 143(3)Section 14ASection 154

…missed in limine." 7.2 The various High Courts have uniformly held that no disallowance u/s 14A can be made if there is no exempt income and in that context overruled the decision of Special Bench, New Delhi in the case of Cheminvest Ltd. vs. ITO reported in 317 ITR 86. In the case in hand, it is clear from the submissions filed during the appellate proceedings that there is no income which is exempt from the tax during the year. In view of the aforesaid discussion, the addition of Rs.5,911/- made by the Assessing Officer u/s 14A Page 17 of 20 Dalmia (Bros.) Pvt. Ltd. read with Rule 8D of the Income Tax Rules,…

DCIT, New Delhi vs. Holcim India Pvt. Ltd., New Delhi

The appeal is dismissed

ITA 2860/DEL/2015[2006-07]Status: DisposedITAT Delhi01 Feb 2024AY 2006-07

Bench: Sh. Saktijit Dey & Sh. N. K. Billaiyaassessment Year: 2006-07 Dcit Vs. M/S. Holcim India Pvt. Ltd. Suite No. 304, 3Rd Floor, Circle- 11 (1) New Delhi Dlf South Court, A-1, Saket, New Delhi-110017 Pan No.Aabch3635C (Appellant) (Respondent) Appellant By Sh. Subhra Jyoti Chakraborty, Cit Dr Respondent By None Date Of Hearing: 01/02/2024 Date Of Pronouncement: 01/02/2024 Order Per N. K. Billaiya, Am:

Section 14A

…has not earned any exempt income during the year, therefore, no disallowance need to be made u/s. 14A of the Act as held by the Hon’ble High Court of Delhi in the case of Corrtech Energy Pvt. Ltd. 372 ITR 97 and also by special Bench of ITAT Cheminvest Ltd. 121 ITD 318 which decision has been affirmed by the Hon’ble Delhi High Court. 5. Respectfully following the same the appeal is dismissed. 6. Decision announced in the open court on 01.02.2024. (SAKTIJIT DEY) ACCOUNTANT MEMBER *NEHA* Date:- .02.2024…

Samrat Finvestors Private Limited., Kolkata vs. ITO, Ward- 10(2), Kolkata.

In the result, appeal of the assessee is allowed

ITA 840/KOL/2023[2014-15]Status: DisposedITAT Kolkata11 Jan 2024AY 2014-15

Bench: Shri Rajesh Kumar, Hon’Ble & Shri Sonjoy Sarma, Hon’Blei.T.A. No. 840/Kol/2023 Assessment Year: 2014-15 Samrat Finvestors Private Limited Income Tax Officer, Ward – 10(2), 20/1, Maharshi Debendra Vs Kolkata 2Nd Floor, Room No. 13A Kolkata - 700007 [Pan : Aadcs4698G] अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri Soumitra Choudhury, A/R Revenue By : Shri B.K. Singh, Jcit, Sr. D/R सुनवाई क" तारीख/Date Of Hearing : 14/12/2023 घोषणा क" तारीख /Date Of Pronouncement: 11/01/2024 आदेश/O R D E R Per Shri Rajesh Kumar: The Present Appeal Is Directed At The Instance Of The Assessee Against The Order Of The National Faceless Appeal Centre, Delhi, [Hereinafter The “Ld. Cit(A)”] Dt. 27/06/2023, Passed U/S 250 Of The Income Tax Act, 1961 (“The Act”) For The Assessment Year 2014-15. 2. The Assessee In The Instant Appeal Has Raised Two Effective Issues In The Various Grounds Before Us Which Are Summed Up As Under:- (I) That The Ld. Cit(A) Has Erred On Facts & In Law In Confirming The Disallowance Of Rs.3,98,50,208/- As Made By The Assessing Officer On Account Alleged Bogus Loss In Share Trading & In F&O Segment. (Ii) The Ld. Cit(A) Has Erred On Facts & In Law In Upholding The Addition Of Rs.11,58,944/- As Made By The Assessing

For Appellant: Shri Soumitra Choudhury, A/RFor Respondent: Shri B.K. Singh, JCIT, Sr. D/R
Section 133(6)Section 14ASection 250

…t. Ltd. vs. CIT, New Delhi in [2018] 91 taxmann.com 154 (SC) wherein it has been held that no disallowance is to be made where there is not exempt income. Similar view has been taken by the Hon’ble Delhi High Court in the case of Cheminvest Ltd. v. CIT (2009) 317 ITR 86. Accordingly, we direct the Assessing Officer to delete the addition by setting aside the decision of the ld. CIT(A) on this issue. Consequently the second issue raised by the assessee is allowed. 14. In the result, appeal of the assessee is allowed. Order pronounced in the Court on 11th January, 2024 at Kolkata. (SONJOY SARMA) ACCOUNTANT MEMBER K…

Bestech India P.Ltd, New Delhi vs. DCIT, Central Circle-1, Faridabad

In the result, the appeals of the assessee in ITA Nos

ITA 2059/DEL/2022[2017-18]Status: DisposedITAT Delhi27 Dec 2023AY 2017-18

Bench: Shri Saktijit Dey & Shri N.K. Billaiya

For Appellant: Shri R.S. Ahuja, CAFor Respondent: Shri Kanv Bali, Sr. DR
Section 14ASection 32(1)

…It is an undisputed fact that during the year under consideration, the assessee has earned NIL exempt income. Therefore, no disallowance can be made u/s 14A r.w.r of the Act 8D of the Rules as held by the Special Bench of ITAT in the case of Cheminvest Ltd 121 ITD 318 affirmed by the Hon'ble High Court of Delhi and Kotak Energy 372 ITR 97. 12. In so far as applicability of CBDT Circular is concerned, its application has been held to be prospective by the Hon'ble Delhi High Court in the case of M/s Era Infrastructure [India] Ltd ITA 204/2022 wherein the Hon'ble High Court held that: “The court is of the v…

Bestech India P.Ltd, New Delhi vs. DCIT, Central Circle 1, Faridabad

In the result, the appeals of the assessee in ITA Nos

ITA 2058/DEL/2022[2016-17]Status: DisposedITAT Delhi27 Dec 2023AY 2016-17

Bench: Shri Saktijit Dey & Shri N.K. Billaiya

For Appellant: Shri R.S. Ahuja, CAFor Respondent: Shri Kanv Bali, Sr. DR
Section 14ASection 32(1)

…It is an undisputed fact that during the year under consideration, the assessee has earned NIL exempt income. Therefore, no disallowance can be made u/s 14A r.w.r of the Act 8D of the Rules as held by the Special Bench of ITAT in the case of Cheminvest Ltd 121 ITD 318 affirmed by the Hon'ble High Court of Delhi and Kotak Energy 372 ITR 97. 12. In so far as applicability of CBDT Circular is concerned, its application has been held to be prospective by the Hon'ble Delhi High Court in the case of M/s Era Infrastructure [India] Ltd ITA 204/2022 wherein the Hon'ble High Court held that: “The court is of the v…

JCIT, Special Range - 1, New Delhi vs. Ameriprise India Pvt. Ltd., New Delhi

In the result, the appeal of the Revenue in ITA No

ITA 1806/DEL/2018[2012-13]Status: DisposedITAT Delhi22 Dec 2023AY 2012-13

Bench: Shri Saktijit Dey & Shri N.K. Billaiya

For Appellant: Shri Kamal Sawhney, AdvFor Respondent: Shri Kanv Bali, Sr. DR
Section 14ASection 2(24)(x)Section 36(1)(va)Section 37Section 40Section 40a

…disallowance is called for u/s 14A of the Act. 25. We are of the considered view that if no exempt income is earned by the assessee, no disallowance can be made u/s 14A r.w.r 8D of the Rules as held by the Special Bench of ITAT in the case of Cheminvest Ltd 121 ITD 318 affirmed by the Hon'ble High Court of Delhi and Kotak Energy 372 ITR 97. 26. Respectfully following the same, we decline to interfere with the same. Ground No. 4 is dismissed. 27. In the result, the appeal of the Revenue in ITA No. 1806/DEL/2018 is partly allowed. The order is pronounced in the open court on 22.12.2023. [SAKTIJIT DEY] [N.K.…

DCIT- CC - 7(3), Mumbai vs. Acg Associated Capsules Pvt. Ltd., Mumbai

In the result, no question of law arises

ITA 3283/MUM/2018[2013-14]Status: DisposedITAT Mumbai04 Dec 2023AY 2013-14

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm

For Appellant: Shri Ketan Ved/For Respondent: Shri Akhtar Hussain Ansari
Section 143(2)Section 143(3)Section 250Section 92C

…vested in the capital of the firms in which the share of profit received by the assessee has been claimed as exempt u/s. 10(2A) of the Act. The ld. A.O. by relying on the decision of Special Bench of the Tribunal in the case of Cheminvest Ltd. vs. ITO [2009] 121 ITD 318 (Del) (SB) and the CBDT Circular No. 5/2014 dated 11.02.2014 held that even in case where the assessee has not earned exempt income, the expenditure related to the earning of such income has to be disallowed. The ld. A.O. also relied on the decision of the Tribunal in the case of Asst. CIT vs. Nimbus Communications Ltd. [2014] 30 ITR (T) 349 and…

DCIT CC- 7(3), Mumbai vs. Acg Associated Capsules Pvt. Ltd., Mumbai

In the result, no question of law arises

ITA 3282/MUM/2018[2012-13]Status: DisposedITAT Mumbai04 Dec 2023AY 2012-13

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm

For Appellant: Shri Ketan Ved/For Respondent: Shri Akhtar Hussain Ansari
Section 143(2)Section 143(3)Section 250Section 92C

…vested in the capital of the firms in which the share of profit received by the assessee has been claimed as exempt u/s. 10(2A) of the Act. The ld. A.O. by relying on the decision of Special Bench of the Tribunal in the case of Cheminvest Ltd. vs. ITO [2009] 121 ITD 318 (Del) (SB) and the CBDT Circular No. 5/2014 dated 11.02.2014 held that even in case where the assessee has not earned exempt income, the expenditure related to the earning of such income has to be disallowed. The ld. A.O. also relied on the decision of the Tribunal in the case of Asst. CIT vs. Nimbus Communications Ltd. [2014] 30 ITR (T) 349 and…

Acg Assocation Capsules P. Ltd, Mumbai vs. DCIT Cen Cir 7(3), Mumbai

In the result, no question of law arises

ITA 2384/MUM/2018[2013-14]Status: DisposedITAT Mumbai04 Dec 2023AY 2013-14

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm

For Appellant: Shri Ketan Ved/For Respondent: Shri Akhtar Hussain Ansari
Section 143(2)Section 143(3)Section 250Section 92C

…vested in the capital of the firms in which the share of profit received by the assessee has been claimed as exempt u/s. 10(2A) of the Act. The ld. A.O. by relying on the decision of Special Bench of the Tribunal in the case of Cheminvest Ltd. vs. ITO [2009] 121 ITD 318 (Del) (SB) and the CBDT Circular No. 5/2014 dated 11.02.2014 held that even in case where the assessee has not earned exempt income, the expenditure related to the earning of such income has to be disallowed. The ld. A.O. also relied on the decision of the Tribunal in the case of Asst. CIT vs. Nimbus Communications Ltd. [2014] 30 ITR (T) 349 and…

Acg Assocation Capsules P. Ltd, Mumbai vs. DCIT Cen Cir 7(3), Mumbai

In the result, no question of law arises

ITA 2383/MUM/2018[2012-13]Status: DisposedITAT Mumbai04 Dec 2023AY 2012-13

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm

For Appellant: Shri Ketan Ved/For Respondent: Shri Akhtar Hussain Ansari
Section 143(2)Section 143(3)Section 250Section 92C

…vested in the capital of the firms in which the share of profit received by the assessee has been claimed as exempt u/s. 10(2A) of the Act. The ld. A.O. by relying on the decision of Special Bench of the Tribunal in the case of Cheminvest Ltd. vs. ITO [2009] 121 ITD 318 (Del) (SB) and the CBDT Circular No. 5/2014 dated 11.02.2014 held that even in case where the assessee has not earned exempt income, the expenditure related to the earning of such income has to be disallowed. The ld. A.O. also relied on the decision of the Tribunal in the case of Asst. CIT vs. Nimbus Communications Ltd. [2014] 30 ITR (T) 349 and…

Smart Hydel Power Ltd, Mumbai vs. The Assistant Commissioner of Income Tax Circle 14(3)(2), Mumbai

In the result, the appeal of the assessee is al

ITA 1951/MUM/2023[2017-2018]Status: DisposedITAT Mumbai05 Sept 2023AY 2017-2018

Bench: Shri Om Prakash Kant () & Shri Pavan Kumar Gadale () Assessment Year: 2017-18 Smart Hydel Power Ltd. The Acit Circle 14(3)(2), 513/A, 5Th Floor, Kohinoor City, 455, 4Th Floor, Aayakar Bhavan, Kirol Road, Kurla (West) Vs. Maharishi Karve Road, Mumbai-400070. Mumbai-400020. Pan No. Aaxcs 0696 Q Appellant Respondent

For Appellant: NoneFor Respondent: Mr. Nayanjyoti Nath, CIT-DR
Section 14ASection 250

…en no exempted income is 14A read with rule 8D has to be made even no exempted income is earned in any particular year. He also n any particular year. He also referred to the decision of the to the decision of the ITAT in the case of Cheminvest Limited Vs ITO 317 ITR 86(AT), Cheminvest Limited Vs ITO 317 ITR 86(AT), Cheminvest Limited Vs ITO 317 ITR 86(AT), where in it is held that disallowance u/s 14A can be made even if where in it is held that disallowance u/s 14A can be made even if where in it is held that disallowance u/s 14A can be made even if no exempt income is actually earned during the year. The Asses…

ACIT, New Delhi vs. M/S. Vipul Infracon Pvt. Ltd., New Delhi

In the result, the Assessee’s appeal is dismissed and Revenue’s Appeal is dismissed

ITA 891/DEL/2017[2011-12]Status: DisposedITAT Delhi09 Aug 2023AY 2011-12

Bench: Shri Shamim Yahya & Shri Yogesh Kumar Us

For Appellant: Shri Sidhant Arora, CAFor Respondent: Shri Anuj Garg, Sr. DR

…er, it is found that the assessee has been pleading before the AO that in the year under consideration they did not have any exempt income. However, the AO while placing reliance on Special Bench decision of the Tribunal in the case of Cheminvest ltd. Vs. ITO 317 ITR 86 wherein it was held that expenditure was allowable to the assessee 9 without any requirement of earning or receipt of income. On that analogy, the AO held that the expenditure shall be disallowed whether or not any income was generated and treated Rs. 1,29,458/- as expenses to earn the exempt income and disallowed the same. However, in view of th…

M/S. Vipul Infracon Pvt. Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, the Assessee’s appeal is dismissed and Revenue’s Appeal is dismissed

ITA 6480/DEL/2016[2011-12]Status: DisposedITAT Delhi09 Aug 2023AY 2011-12

Bench: Shri Shamim Yahya & Shri Yogesh Kumar Us

For Appellant: Shri Sidhant Arora, CAFor Respondent: Shri Anuj Garg, Sr. DR

…er, it is found that the assessee has been pleading before the AO that in the year under consideration they did not have any exempt income. However, the AO while placing reliance on Special Bench decision of the Tribunal in the case of Cheminvest ltd. Vs. ITO 317 ITR 86 wherein it was held that expenditure was allowable to the assessee 9 without any requirement of earning or receipt of income. On that analogy, the AO held that the expenditure shall be disallowed whether or not any income was generated and treated Rs. 1,29,458/- as expenses to earn the exempt income and disallowed the same. However, in view of th…

DCIT- Central Circle 5(1), Mumbai vs. M/S. Itd Cementation India Limited, Mumbai

In the result, the appeal of the Revenue is partly allowed

ITA 642/MUM/2023[2016-17]Status: DisposedITAT Mumbai26 Jul 2023AY 2016-17

Bench: Shri Om Prakash Kant () & Shri Narender Kumar Choudhry () Assessment Year: 2016-17 The Dcit, Central Circle- M/S Itd Cementation India 5(1), Ltd., Vs. Room No. 1928, 19Th Floor, National Plastic Building, A- Air India Building, Nariman Subhash Road, Paranjape B Point, Scheme, Vile Parle (E), Mumbai-400021. Mumbai-400057. Pan No. Aaact 1426 A Appellant Respondent

For Appellant: Mr. Vijay MehtaFor Respondent: Mr. Ram Prakash Rastogi
Section 115JSection 14ASection 37

…by the assessee and therefore, following the finding of the Hon’ble Delhi High Court in the case of the finding of the Hon’ble Delhi High Court in the case of the finding of the Hon’ble Delhi High Court in the case of Cheminvest Ltd. v. CIT Ltd. v. CIT (2009) 317 ITR 86, no disallowance can no disallowance can be made in the case of the assessee. Accordingly, we uphold the be made in the case of the assessee. Accordingly, we uphold the be made in the case of the assessee. Accordingly, we uphold the disallowance deleted by disallowance deleted by the Ld. CIT(A) on the issue in dispute and the Ld. CIT(A) on the iss…

Assistant Commissioner of Income-Tax, Circle-1(1), Raipur (Cg) vs. M/S Vandana Vidyut Limited, Raipur (Cg)

In the result, appeal of the revenue is allowed for statistical purposes in terms of our aforesaid observations

ITA 138/BIL/2017[2013-14]Status: DisposedITAT Raipur03 Jul 2023AY 2013-14

Bench: Shri Ravish Sood & Shri Arun Khodpiaआयकर अपील सं. / Ita No.138/Rpr/2017 "नधा"रण वष" / Assessment Year : 2013-14 The Assistant Commissioner Of Income Tax, Circle-1(1), Raipur (C.G.) .......अपीलाथ" / Appellant बनाम / V/S. M/S. Vandana Vidyut Limited Vandana Building, M.G Road, Jawahar Nagar, Raipur (C.G.) Pan : Aaacv7850L ……""यथ" / Respondent

For Appellant: NoneFor Respondent: Shri V.K Singh, CIT-DR
Section 143(3)Section 14ASection 14A(2)Section 250(4)Section 68

…hall also apply in relation to case where any assessee claims that no expenditure has been incurred by him in relation to the income which does not part form part of the total income under this Act, as held in the case of Cheminvest Ltd. Vs ITO (ITAT, SB-Del) 121 ITD 318 and Pradeep Kar Vs ACIT(Kar) 319 ITR 416?". 3. "Whether on points of law and on facts & circumstances of the case, the Ld. CIT(A) having concurrent powers of the AO u/s 250(4) of the Act, was justified in deleting the addition of Rs. 10,09,50,000/- made by the AO in the absence of satisfaction of parameters prescribed u/s 68 of the Act?" 4. "Whet…

Theacit Central-2, Indore vs. M/S Keti Construction Ltd., Indore

In the result, appeal of revenue is dismissed

ITA 329/IND/2022[2012-13]Status: DisposedITAT Indore30 May 2023AY 2012-13

Bench: Shri Vijay Pal Rao & Shri B.M. Biyaniacit(Central)-2 M/S Keti Construction Ltd Indore Vastalya Chamebers, Sapna Sangeeta, 31/6, Sneh Nagar Vs. Main Road, Indore

Section 143(3)Section 144Section 14A

…u/s 14A@ .5% of the average value of investment. Ld. CIT(A) has deleted this addition by considering the fact that there is no exempt income earned by the assessee and by following the decision of Hon’ble Delhi High Court in case of Cheminvest Limited vs. CIT 317 ITR 86 as well as decision of this tribunal in case of DCIT vs. Keti KJ Construction Limited dated 31.07.2019. We further note that this tribunal in assessee’s own case for A.Y. 2017-18 in ITANo.96/Ind/2022 vide order dated 30.01.2023 has considered and decided this issue as under: 5. In view of above the controversy regarding making disallowance u/s. 1…

Omni Active Health Technologies Limited, Mumbai vs. Addl/Jt/Dy/Asst/CIT/ITO/NFAC, Delhi

ITA 748/MUM/2022[2017-18]Status: DisposedITAT Mumbai19 Apr 2023AY 2017-18
For Appellant: Shri Ketan VedFor Respondent: Shri Manoj Kumar
Section 115JSection 142(1)Section 143(3)Section 144BSection 144C(13)Section 14ASection 35Section 5Section 92C

…f Rs.2,42,85,000/-. He noted that no disallowance u/s. 14A has been done. He rejected the assessee's submission that the assessee has not earned any exempt dividend income by placing reliance upon the ITAT decision in the case of Cheminvest Ltd. v. ITO [2009] 121 ITD 318 (Delhi) (SB). The Assessing Officer proceeded to apply Rule 8D and made the disallowance of Rs.7,41,654/-. 37. Against the above order, the assessee filed objection before the TRP and the DRP granted part relief directing as under: 8.8 In view of the above detailed discussion, the action of the A.O. in applying Rule 8D is upheld. However, the DRP…

Deputy Commissioner of Income Tax Circle-3(1)(1), Bangalore vs. M/S Infosys Limited, Bangalore

In the result, the appeal filed by the assessee as well as by revenue are partly allowed for statistical purposes

ITA 809/BANG/2018[2013-14]Status: DisposedITAT Bangalore09 Jan 2023AY 2013-14

Bench: Shri N.V. Vasudevan & Shri Chandra Poojariit(Tp)A No.735/Bang/2018 Assessment Year: 2013-14

For Appellant: Shri Padam Chand Khincha, A.RFor Respondent: Sri Sreenivas T. Bidari, D.R
Section 11Section 14ASection 194JSection 234BSection 40Section 80J

…es are out of internal accounts or non-interest bearing funds, disallowance u/s.14A IT(TP)A No.735/Bang/2018 & M/s. Infosys Limited, Bangalore Page 7 of 85 can be made. Reliance was also placed by the AO on the cases of Cheminvest Ltd. Vs. ITO (ITAT-SB-Del) 121 ITD 318 and Pradeep Kar Vs. ACIT (Kar) 319 ITR 416, wherein it was held that expenditure in relation to exempted income is to be disallowed u/s.14A even when no exempted income is earned during the year. Further, in the case of Godrej & Boyce Mfg. Co. Ltd. Vs. Deputy Commissioner of Income tax, (2010) 234 CTR 1 (Born), High Court of Bombay has held that…

M/S Infosys Ltd, Bangalor E vs. The Assistant Commissioner of Income Tax Circle-3(1)(1), Bangalore

In the result, the appeal filed by the assessee as well as by revenue are partly allowed for statistical purposes

ITA 735/BANG/2018[2013-14]Status: DisposedITAT Bangalore09 Jan 2023AY 2013-14

Bench: Shri N.V. Vasudevan & Shri Chandra Poojariit(Tp)A No.735/Bang/2018 Assessment Year: 2013-14

For Appellant: Shri Padam Chand Khincha, A.RFor Respondent: Sri Sreenivas T. Bidari, D.R
Section 11Section 14ASection 194JSection 234BSection 40Section 80J

…es are out of internal accounts or non-interest bearing funds, disallowance u/s.14A IT(TP)A No.735/Bang/2018 & M/s. Infosys Limited, Bangalore Page 7 of 85 can be made. Reliance was also placed by the AO on the cases of Cheminvest Ltd. Vs. ITO (ITAT-SB-Del) 121 ITD 318 and Pradeep Kar Vs. ACIT (Kar) 319 ITR 416, wherein it was held that expenditure in relation to exempted income is to be disallowed u/s.14A even when no exempted income is earned during the year. Further, in the case of Godrej & Boyce Mfg. Co. Ltd. Vs. Deputy Commissioner of Income tax, (2010) 234 CTR 1 (Born), High Court of Bombay has held that…

ACIT, New Delhi vs. M/S. India Bulls Power Ltd., New Delhi

The appeals are dismissed in regard to the first question

ITA 2013/DEL/2017[2011-12]Status: DisposedITAT Delhi05 Jan 2023AY 2011-12

Bench: Shri Anil Chaturvedi & Ms. Astha Chandraasstt. Year: 2011-12 Acit, Vs. India Bulls Power Ltd. (Now Known Circle-21(1), As Rattan India Power Ltd.) New Delhi. 5Th Floor, Tower-B, Worldmark-1, Aerocity, New Delhi- 110 037 Pan Aalcs2063D (Appellant) (Respondent)

For Appellant: Shri Ajay Wadhwa, AdvocateFor Respondent: Shri Anuj Garg, Sr. DR
Section 10Section 143(3)Section 14ASection 154

…no dividend income had been earned by the Assessee in the relevant AY? The Court referred to the decision of this Court in Maxopp Investment Ltd. (supra) and to the decision of the Special Bench of the ITAT in this very case i.e. Cheminvest Ltd. v. CIT (2009) 317 ITR 86. The Court also referred to three decisions of different High Courts which have decided the issue against Revenue. The first was the decision in Commissioner of Income Tax, Faridabad v. M/s. Lakhani Marketing Ind. (decision dated 2nd April 2014 of the High Court of Punjab and Haryana in ITA No. 970/2008) which in turn referred to two earlier decis…