2019 (8) TMI 152

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....Kapil, Sr. DR ORDER PER SUDHANSHU SRIVASTAVA, JM : This appeal is preferred by the revenue against the order dated 25.01.2017 passed by the ld. CIT(A)-30, New Delhi for assessment year 2013-14. 2.0 The sole issue arising in this appeal is the deletion of disallowance of Rs. 1,50,72,830/- made u/s 14A of the Income Tax Act, 1961 (hereinafter called 'the Act') r/w Rule 8D of the ....

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.... of Section 14A did not get attracted. However, the Assessing Officer proceeded to make an addition of Rs. 1,50,70,726/- u/s 14A r/w Rule 8D. The assessee's appeal before the ld. Commissioner of Income Tax(A) was allowed who deleted the addition by holding that since no exempt income had been earned, the Assessing Officer had erroneously invoked the provisions of section 14A. 2.2 Aggrieved with....

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....hi High Court in the case of Cheminvest Ltd. vs C.I.T. (2015) 378 ITR 33 would come to the aid of the assessee wherein the Hon'ble High Court had held that in the absence of any exempt income, disallowance u/s 14A of the Act of any amount was not permissible. The relevant paragraphs of the judgment of the Hon'ble High Court are reproduced hereinunder for a ready reference:- "22. In the im....

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....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 ....