TaxTMI 
TaxTMI 
2020 (11) TMI 299
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....er: 3. Assessee is a company which is stated to be engaged in the business of manufacturing of Kraft paper, writing printing & news print paper. Assessee electronically filed its return of income for A.Y 2013-14 on 28.09.2013 declaring loss of Rs. 91,67,27,055/- (comprising of business loss of Rs. 10,45,80,364/- and long term capital loss of Rs. 81,21,46,690/-). The case was selected for scrutiny and thereafter, assessment was framed u/s 143(3) vide order dated 23.03.2016 and the total loss was determined at Rs. 6,35,89,787/-. Aggrieved by the order of AO, assessee carried the matter before the CIT(A) who vide order dated 07.06.2017 (in Appeal No.86/16-17/2520) granted substantial relief to the assessee. Aggrieved by the order of CIT(A),....
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....ssessee and therefore no disallowance u/s 14A is called for. It was further submitted that assessee has also not incurred any expenditure for earning the exempt income and therefore for this reason also no disallowance u/s 14A is called for. The submissions of the assessee was not found acceptable to AO. AO was of the view that the provisions u/s 14A are mandatory in nature and it is not material that assessee should have earned such exempt income during the financial year for invoking the disallowance u/s 14A. He was further of the view that since investment has been made in the equity of the companies and the income derived or likely to be derived from such investment would be exempt from tax therefore the provisions of section 14A are ap....
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.... income in the form of dividend has been earned by the assessee. The aforesaid submissions of the assessee have not been controverted by the Revenue. We find that Hon'ble Delhi High Court in the case of PCIT vs. GVK Project and Technical Services Ltd. (2019) 106 taxmann.com 180 upheld the Tribunal's order holding that in the absence of any exempt income reported by the assessee, no disallowance u/s 14A can be made. The Revenue filed SLP before the Hon'ble Apex Court challenging the aforesaid decision of High Court. The SLP filed by the Revenue was dismissed which is reported in (2019) 106 taxmann.com 180 (SC). Before us, Revenue has relied upon the decision of Hon'ble Apex Court in the case of Maxopp Investments (supra). We are of the view ....
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.... his order) held that since Rs. 17,13,716/- was already added back by the assessee in the computation of income in earlier years, to that extent no disallowance can be made. He, accordingly granted relief to that extent and upheld the disallowance of balance amount of Rs. 14,61,417/-. Aggrieved by the order of CIT(A), Revenue is now before us. 11. Before us, Learned DR submitted that the issue was not examined at the stage of assessment proceedings due to the admission of assessee for addition and therefore, the matter may be remitted to the AO for examination of the claim of the assessee. Learned AR on the other hand pointed to the chart which is reproduced by the CIT(A) in his order and submitted that the CIT(A) after examination of th....