2019 (6) TMI 666

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....ts of the case, in brief, are that the assessee Oil Industries Development Board (herein after referred as OIDB) is an autonomous institution under the aegis of Ministry of Petroleum, Oil & Natural Gas constituted by an act of Parliament called Oil Industries (Development) Act, 1974 and is engaged in providing financial assistance for the development of oil industry. It filed its return of income on 29.09.2012 declaring income of Rs. 4,68,01,50,851/-. The Assessing Officer during the course of assessment proceedings noted that the assessee has made investment in shares/ securities amounting to Rs. 35,882 lacs & Rs. 150,134 lacs as on first and last day of the year, respectively. The above investment is capable of yielding income which is ....

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.... the said income. In other words, section 14 A will not apply if no exempt income is received or receivable during the relevant previous year. 5.2.4.5 It is not possible to accept that no expenditure has been made in managing the shares of Rs. 3,588 crore., particularly when the P & L account shows huge establishment and administrative expenses, part of which could be attributed to such investment. However, in view of the judgement of the Hon'ble Delhi High Court in M/s Cheminvest Ltd(Supra),the addition in this case would not be sustained. The same is directed to be deleted...." 5.2.5 Following the same reasoning and in view of AR's arguments (see para 1.3 of the assessment order) claiming that no dividend was earned during the y....