2019 (3) TMI 1729

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....scribed by the CBDT Circular No. 3/2018 dated 11.07.2018. 2. It has been pointed out that the issue involved in the appeal related to disallowance of expenses made u/s 14A of the Act. I t has been contended that the CBDT in its Circular No.5/2014 has clarified that the disallowance of expenses u/s 14A of the Act would be attracted even if no exempt income is earned. The Revenue has, therefore, contended that the appeal had been allowed in violation of CBDT Circular as above. As per the present application filed, it has been contended that the dismissal of the appeal as above was not acceptable on the following grounds: "(i) Whether on the facts and in the circumstances of the case, the order of the Hon'ble ITAT is not perverse a....

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....sp;(v) Whether on the facts and in the circumstances of the case, the Hon'ble ITAT is justified in dismissing the appeal of the Revenue on tax effect, and not deciding the merits, without appreciating the fact that there is no such restriction stipulated either in sect ion 14A of the Income Tax Act or Rule 8D of the Income Tax Rule?" (vi) Whether on the facts and in the circumstances of the case, the Hon'ble ITAT is justified in dismissing the appeal of the Revenue on tax effect, and not deciding the merits, ignoring the principal of apportionment regardless of exempt income laid down by Hon'ble Supreme Court decision in CIT vs Wal fort Share and Stock Brokers P Ltd:326 ITR 1 (SC) and upheld by the Hon'ble Supreme Court in 91 Taxma....