2016 (1) TMI 856

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....y the assessee, the expenses relating to such income were NIL. 3(i)On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the action of the Ao in disallowing an amount of Rs. 15,85,328/- invoking the provision of section 40(a)(ia) of the Act. (ii)That the disallowance has been confirmed ignoring the fact that TDS has been deposited before the due date of filing the return and in view of the amendment to section 40(a)(ia) the same are allowable during the year under consideration. (iii)Without prejudice to the above and in the alternative, TDS being deposited in the succeeding year, the expenses are allowable in the next year. 4. On the facts and circumstances of the case, the learned CIT(A) has erred in both on facts and in law in confirming the action of the AO in disallowing an amount of Rs. 14,02,250/- claimed by the assessee as deduction under section 80G of the Act. 5. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the action of the AO in disallowing an amount of Rs. 15,000/- holding the same be prior period expenses. 6. The appellant craves lea....

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....llowing two cases: (i) The aforesaid case relied upon by the ld. CIT(A) i.e. Cheminvest Vs. ITO, has been recently overruled by the Jurisdictional High Court in ITA No. 749/2014 dated. 02.09.2015 and held under:- "23. In the context of the facts enumerated hereinbefore the Court answers the question framed by holding that the expression "does not form part of the total income" in Section 14A of the envisages that there should be an actual receipt of income, which is not includible in the total income, during the relevant previous year for the purpose of disallowing any expenditure incurred in relation to the said income. In other words, Section 14A will not apply if no exempt income is received or receivable during the relevant previous year. " (ii) Further reliance has been placed on following judgments of High court in respect of no addition can be made under Section 14A in case there is no exempt income earned: i. The jurisdictional Delhi High Court has also considered this issue in the case of Commissioner of Income Tax vs Holcim India P. Ltd.ITA No. 486/2014 & ITA No. 299/2014 Dated Sth September 2014.ln this case the Hon'ble jurisdictional High Court has held th....

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....income, the corresponding expenditure could not be worked out for disallowance. The view of the CIT(A) , which has been affirmed by the Tribunal, hence does not give rise to any substantial question of law. Hence, the deletion of the disallowance of 0 2,03,752/- made by the Assessing Officer was in order" . 15. Income exempt under Section 10 in a particular assessment year, may not have been exempt earlier and can become taxable in future years. Further, whether income earned in a subsequent year would or would not be taxable, may depend upon the nature of transaction entered into in the subsequent assessment year. For example, long term capital gain on sale of shares is presently not taxable where security transaction. tax has been paid, but a private sale of shares in an off market transaction attracts capital gains tax. It is an undisputed position that respondent assessee is an investment company and had invested by purchasing a substantial number of shares and thereby securing right to management. Possibility of sale of shares by private placement etc. cannot be ruled out and is not an improbability. Dividend may or may not be declared. Dividend is declared by the company a....

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.... the matter to the file of the Assessing Officer for verification of the donations made. Accordingly, this ground of appeal allowed for statistical purposes. 7. Ground no. 5 is not pressed by the learned counsel for the assesee. Accordingly, the same is dismissed as not pressed. 8. Hence, this appeal is allowed for statistical purposes. ITA No. 5753/Del/2013 for AY 2009-10: 9. This appeal filed by the assessee is directed against the order of learned CIT(A), dated 21.08.2013 passed for the assessment year 2009-10. The assessee raised the following grounds of appeal: 1. On the facts and circumstances of the case, the order passed by the learned Commissioner of Income Tax [CIT(A)] is bad, both in the eye of law and on the facts. 2(i) On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law, in confirming the action of the AO in making disallowance of an amount of Rs. 7,48,6001- invoking the provision of section 14A of the Act. (ii) That the said disallowance has been confirmed rejecting the contention of the assesse that there being no tax free income earned by the assesse, the expenses relating to such income were NIL. 3(i) On t....