TaxTMI 
TaxTMI 
2019 (2) TMI 41
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....set, Learned Counsel for the assessee submitted that Assessing Officer invoking provisions of section u/s. 14A r.w. Rule 8D made disallowance of Rs..116 Crores and the Ld.CIT(A) restricted the disallowance only to the exempt income received by the assessee for the Assessment Year under consideration. Therefore, he submitted that there is no infirmity in the order passed by the Ld.CIT(A). 4. Ld. DR vehemently supported the order of the Assessing Officer. 5. We have heard the rival submissions, perused the orders of the authorities below. On a careful reading of the Ld.CIT(A) order, we find that, assessee during the Assessment Year under consideration received exempt income of Rs..57,539/- and the Ld.CIT(A) following the decision of the Pun....
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.... assessee. respectfully following the said decision, we uphold the disallowance made by the Assessing Officer in respect of Bizerba Weighing Scales. This ground of Revenue is allowed. 9. In the result, appeal of the Revenue is partly allowed. ITA.No. 6048/MUM/2016 & 6175/MUM/2016 10. The appeal filed by the Revenue for the Assessment Year 2012-13 is against the order of the Ld.CIT(A) in deleting the disallowance made u/s. 14A and depreciation on Weighing Scale and the appeal of the assessee is against the action of the Ld.CIT(A) in sustaining the suomoto disallowance made by the assessee u/s. 14A in the computation of income. 11. Briefly stated the facts are that, the assessee in the return of income filed, made suomoto disallowance of ....
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....ncome which does not form part of total income and therefore since the assessee earned no exempt income there shall not be any disallowance u/s. 14A of the Act. Respectfully following the said decision, we uphold the order of the Ld.CIT(A) in deleting the disallowance made u/s. 14A. Grounds raised by the Revenue on this are rejected. 14. Coming to the issue of higher depreciation on Weighing Scale the same is decided against the assessee by the ITAT in ITA.No. 3572/MUM/2012 dated 27.11.2017. Following the said order, we uphold the disallowance made by the Assessing Officer. This ground of Revenue is allowed. 15. Coming to assessee's appeal, it is the contention of the Ld. Counsel for the assessee that, in the course of the Assessment Proc....
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....bundant caution & should not be considered as our acquicience to such disallowance. The intention of section 14A is to disallow expenditure incurred in relation to income which does not form part of total income (i.empt income). Therefore, it seems only logical that unless there is exempt income in a particular year, section 14A should not trigger for that year. However, subsequently, in the following cases, various High Courts have taken a view that unless there is exempt income in a year, no disallowance u/s 14A can be made for that year. > CIT v. lakhaniMarketing ITA.No.970/2008(P&H)(HC) > CIT v. Shivam Motors (P) Ltd., ITA.No. 88/2014 (All.)(HC); > CIT v. Cortech Energy Pvt. Ltd. ITA.No. 239 of 2014 (Guj.) (HC); > CIT v. Delit....