2020 (8) TMI 260

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....x Act, 1961 read with Rule 8D of the Income Tax Rules, 1962 was not called for as the assessee has not earned any exempt income ignoring the legislative intent of the statue, further clarified vide circular no. 5/2014 dated 11/02/2014 which provides for disallowance of expenditure even where the assessee has not earned any exempt income in a particular year ? 2. It is prayed that the order of the Ld. CIT(A) be set aside and that of the A.O. be restored. 3. The appellant craves leave to add or amend the grounds of appeal before the appeal is heard and disposed off. 3. From the aforesaid grounds it is clear that the grievance of the Department relates to the deletion of addition made by the A.O. by invoking the provisions....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... IPGCL. Since no exempt income has been derived by the appellant, no disallowance under Section 14A r.w Rule 8D is warranted. The jurisdictional High Court in the case of CIT Vs. Lakhani Marketing (2014(7) TMI 44 Punjab and Haryana High Court) has held that no disallowance under Section 14A is warranted in the absence of exempt income. Also, the case of the appellant is squarely covered by the order of jurisdictional ITAT, Chandigarh in the case of M/s Oasis Merchants Private Limited Vs The ACIT,Circe-7,Ludhiana 2017(7)TMI 356. It has also been observed from the assessment orders passed by AO under the provisions of section 147/148 of the Income tax Act for the assessment years 2010- 11 and 2011-12 that the AO has accepted the contention of....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....pt income claimed by the assessee therefore the arbitrary disallowance made by the A.O. was rightly deleted by the Ld. CIT(A) particularly when the A.O. himself accepted the explanation of the assessee and did not make any disallowance on similar facts in reassessment proceedings for the preceding assessment years 2010-11 and 2011-12. Reliance was placed on the judgment of the Hon'ble Jurisdictional High Court in the case of CIT Vs. Winsome Textiles Industries Ltd. reported at (2009) 319 ITR 204. 9. We have considered the submissions of both the parties and perused the material available on the record. In the present case it is an admitted fact that the Ld. CIT(A) by following the judgment of the Hon'ble Jurisdictional High Court....