2022 (1) TMI 480

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....s appeal filed by the Revenue is directed against the order dated 14.05.2018 of the Commissioner of Income Tax (Appeals)-1, Gurgaon relating to Assessment Year 2015-16. 2. The relevant facts as culled from the material on records are as under: 3. Assessee is a company stated to be promoted by UEM Group Berhad and IDFC Bank Limited and is stated to be in the business of conceiving, developing....

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.... 2. Ld. CIT(A) has erred on fact and in law in ignoring CBDT Circular No. 5 of 2014 dated 11.12.2018 clarifying that disallowance under Rule 8D read with section 14A of the Income Tax Act, 1961 is to be made even when tax payer is a particular in a particular year has not earned any exempt income. 3. That the appellant craves for the permission to add, delete or amend grounds of a....

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....ules to which assessee inter alia submitted that no dividend income has been earned from the investments, no interest expenditure has been incurred by the company for earning of exempt income and therefore as per the settled law, no disallowance u/s. 14A of the Act is warranted. The submissions of the assessee was not found acceptable to AO. AO thereafter by applying the provision of Rule 8D r.w.s....

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....is with respect to the disallowance u/s. 14A of the Act. We find that CIT(A) while deleting the addition made by AO has given a finding that assessee has not earned any exempt income. He therefore held that no disallowance can be made in the absence of exempt income and for the aforesaid proposition, he relied on the decision of Hon'ble Punjab and Haryana High Court in the case of Lakhani Mark....