2019 (6) TMI 1621

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....rs have been heard together and are now decided by this consolidated order. 3. Rival contentions have been heard and record perused. Facts in brief are that the assessee company M/s. J. M. Baxi Group was founded in 1916. It is the largest Shipping Agency House in India. The company has a strong presence in all its business activities and leadership in several of the shipping support services. Currently, over 200 National and International shipping companies avail their services. The group has offices in all major and minor port cities and other big cities. The company has set up a strong marketing network via various group companies/affiliates operating across the globe. The group companies of J. M. Baxi have their marketing offices locate....

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....dition made by the AO as the assessee itself had made a suo moto disallowance of 25% of such expenses. This is a covered issue wherein the Hon'ble ITAT as categorically has stated that 25% of such sundry expenses only need to be disallowed and not the entire amount. During the relevant AY the assessee has incurred expenses to the tune of Rs. 1,29,63,170 out of which it had" made a suo moto disallowance of Rs,32,40,793/-. The AO made a disallowance of the balance amount of Rs. 97,22,377/- Respectfully following the decision of the jurisdictional ITAT in the appellant's own case on identical facts for AY 2007-08, it is held that the disallowance of Rs. 32,40,793/- is justified. As the assessee itself had made this disallowance, there ....

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....ision of special Bench of ITAT Delhi in the case of Cheminvest Ltd vs ITO 317 ITR 86(AT) wherein it was held that the disallowance u/s 14A can be made even if no exempt income is actually earned or received during the year. However, this decision of Special Bench has been overruled by the Hon'ble Delhi High Court(378 ITR 33), wherein the Hon'ble High Court held categorically that section 14A will not apply if no exempt income is received or receivable during the relevant previous year. 7.1 In view of the above judgment of the Hon'ble Delhi High Court it is held that as the assessee has not earned any exempt income during the year, no disallowance u/s 14A is warranted. This ground of appeal is ALLOWED." 5. We have considered ....