2021 (9) TMI 1037

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....ry, against law and facts on records. 2. The learned Commissioner of Income Tax (A) has erred in confirming addition of Rs. 26,61,443/- u/s 14A of the Income Tax Act, 1961 without going through the facts of the case, statutory provisions as well as submission filed during the course of proceedings. 3. The appellant may be permitted to add, alter or amend any of the foregoing grounds of appeal." (B) The only issue in this appeal is regarding the disallowance amounting to Rs. 26,61,443/- made under Section 14A of Income Tax Act, ("I.T. Act", for short) by the Assessing Officer vide Assessment Order dated 5/12/16 passed under Section 143(3) of I.T. Act. This disallowance was confirmed by the Ld. CIT(A) vide her impugned ap....

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....ssee, holding that the disallowance under Section 14A of I.T. Act is to be made irrespective of whether any exempt income had been earned during the financial year or not; and further that it was not material that assessee should have earned such exempt income during the financial year under consideration. To quote the Assessing Officer, his observation in paragraph 3.3 of the Assessment Order is reproduced as under: "3.3 The reply of the assessee has been considered but not found acceptable. The basic object of section 14A is to allow only that expenditure which is relatable to earning of income and it therefore follows that the expenses which are relatable to earning of exempt income have to be considered for disallowance, irresp....

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....n of the assessee is given below:- i. Cheminvest Ltd vs. ACIT 378 ITR 33 (Delhi) ii. CIT vs Holcim India Pvt. Ltd. ITA No. 486 and 299/ 2014 (Delhi High Court) iii. Commissioner of Income Tax vs Corrtech Energy Pvt Ltd 2015 372 ITR 98 (Guj) iv. CIT vs Shivam Motors Pvt Ltd ITA No 88/2014 v. CIT vs Corretch Energy Pvt. Ltd. ITA No. 239/2014 In view of the above disallowance of Rs. 26,61,443/- made u/s 14A of the Income Tax Act may please be deleted." (C.1) The Ld. CIT(A) rejected the contention of the assessee and confirmed the aforesaid disallowance amounting to Rs. 26,61,443/- made by the Assessing officer under Section 14A of I.T. Act read with Rule, 8D of I.T. Rules. Aggrieved agai....