2020 (1) TMI 1161

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..... Mr. Ruturaj Gurjar for Respondent. P.C. :- 1. Heard Mr.A.R.Malhotra, learned standing counsel revenue for the appellant and Mr. Mihir C. Naniwadekar, learned counsel for the respondent - assessee. 2. This appeal has been fled by the revenue under Section 260A of the Income Tax Act, 1961 ("the Act" for short) against the order dated 18.10.2016 passed by the Income Tax Appellate Tribunal "A" Be....

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....n confirming the order of the Ld. CIT(A) to restrict the disallowance to Rs. 1.16 crore without appreciating the fact that by doing this, Hon'ble ITAT has allowed the application of Rule 8D(2) (ii) of the I.T. Rules, 1962 in the case of the assessee even when it has not earned any exempt income ? 4. Respondent in its return of income for the assessment year under consideration declared total loss....

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....the view that the assessee had made investments that would give rise to exempt income and, therefore, Section 14A of the Act was applicable. Accordingly, vide order dated 08.05.2013, first appellate authority affirmed the action of the Assessing Officer in invoking Section 14A of the Act but reduced the quantum of disallowance to Rs. 1,16,03,269/- for the grounds and reasons mentioned in the appel....

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....and observed that there is uniformity in the view that in case there is no exempt income claimed by the assessee in the return of income, no disallowance can be made by the revenue. Consequently, vide order dated 18.10.2016 Tribunal dismissed the appeal of the revenue. 7. Submissions made by learned counsel for the parties have been considered. 8. Section 14A of the Act deals with expenditure in....