2015 (8) TMI 1431

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....RDER This appeal filed by the assessee is directed against the order of Commissioner of Income Tax (Appeals)-VI, Kolkata dated 18.08.2014 for A.Y.2006-07. 2. The sole issue that arises for my adjudication is disallowance u/s 14A of the Act. The assessee received dividend of Rs. 34,445/-. The AO made a disallowance of Rs. 3,00,000/- u/s 14A of the Act. 3. After hearing the rival contention....

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....decisions of the same Court in CIT Vs. Hero Cycles Limited, [2010] 323 ITR 518 and CIT Vs. Winsome Textile Industries Limited, [2009] 319 ITR 204 to hold that Section 14A cannot be invoked when no exempt income was earned. The second decision is of the Gujarat High Court in Commissioner of Income Tax-I Vs. Corrtecb Energy (P.) Ltd. [2014] 223 Taxmann 130 (Guj .). The third decision is of the AlIah....

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....me. Hence, in the absence of any tax free 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 Rs. 2, 03,752/- made by the Assessing Officer was in order" . 15. Income exempt under Section 10 in ....

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....be declared. Dividend is declared by the company and strictly in legal sense, a shareholder has no control and cannot insist on payment of dividend. When declared, it is subjected to dividend distribution tax. 16. What is also noticeable is that the entire or whole expenditure has been disallowed as if there was no expenditure incurred by the respondent-assessee for conducting business. T....