Revenue's Appeal Dismissed in Section 14A Disallowance Case The appeal was filed by the Revenue against the reduction of disallowance under section 14A from Rs. 7.39 Crores to Rs. 39,70,832 for Assessment Year ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Revenue's Appeal Dismissed in Section 14A Disallowance Case
The appeal was filed by the Revenue against the reduction of disallowance under section 14A from Rs. 7.39 Crores to Rs. 39,70,832 for Assessment Year 2013-14. The Revenue's appeal was dismissed as the Commissioner of Income Tax (Appeals) decision to limit the disallowance to Rs. 39,70,832, which was 0.5% of the average value of the investment, was upheld. The assessee did not appeal against this disallowance, and the Revenue failed to demonstrate any error in the Commissioner's decision. The judgment was pronounced in Chennai on 4th December 2019.
Issues: Appeal against reduction of disallowance u/s.14A from Rs. 7.39 Crores to Rs. 39,70,832 for Assessment Year 2013-14.
Analysis: 1. The appeal was filed by the Revenue against the order of the Commissioner of Income Tax (Appeals) reducing the disallowance u/s.14A from Rs. 7.39 Crores to Rs. 39,70,832 for the Assessment Year 2013-14.
2. Ms. R. Anita, JCIT represented the Revenue, while Mr. R. Vijayaraghavan, Advocate represented the Assessee during the proceedings.
3. The Departmental Representative supported the order of the Assessing Officer, while the Authorized Representative argued that the actual exempt income earned by the assessee was only Rs. 1,12,921. Reference was made to the decision of the Delhi High Court in the case of Joint Investment Private Limited Vs. Commissioner of Income Tax, upheld by the Supreme Court in the case of ABCAUS, to support the contention that the disallowance should be restricted to the exempt income.
4. After considering the submissions and examining the record, it was noted that the assessee did not file an appeal against the disallowance of Rs. 39,70,832. The Revenue failed to identify any error in the order of the Commissioner of Income Tax (Appeals) in limiting the disallowance u/s.14A to Rs. 39,70,832, which was 0.5% of the average value of the investment. Consequently, the order of the Commissioner of Income Tax (Appeals) was upheld, and the appeal of the Revenue was dismissed.
5. The judgment was pronounced in open Court on 4th December 2019 in Chennai.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
