2022 (10) TMI 497

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.... Sr. Standing Counsel for Revenue with Ms. Mansie Jain, Advocate. Respondent Through: Mr. Mayank Nagi & Mr. Tarandeep Singh, Advocates. J U D G M E N T MANMOHAN, J (Oral): 1. Present Income Tax Appeal has been filed challenging the order dated 06th January, 2021 passed by the Income Tax Appellate Tribunal ('ITAT') in ITA No.7367/DEL./2017 for the Assessment Year ('AY') 2007-08. 2. L....

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....he Assessing Officer under Section 14A read with Rule 8D of the Act after excluding the investment in OMIFCO-Oman. 3. This Court is of the opinion that in view of Section 14A(1), no deduction is to be allowed in respect of expenditure incurred by the assessee in relation to income which does not form part of the total income under the Act. As per Section 2(45) of the Act, "total income" means t....

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....acted in this case. 4. This Court in the case of CIT vs. M/s Kribhco [2012] 349 ITR 618 (Delhi) has held that provisions of Section 14A are inapplicable as far as deductions, which are permissible and allowed under Chapter VIA are concerned. The relevant extract of the judgment is reproduced hereinbelow:- "32...Thus, the income on which the deduction is allowed forms a part of the tota....

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....rst included in the total income of the assessee. It, therefore, becomes part of the income, which is subjected to tax. Thereafter, deduction is to be allowed in accordance with and subject to the fulfillment of the conditions of the respective provisions. This is also subject to Section 80AB and 80A(1) and (2). Chapter VI-A does not postulate or state that the incomes which qualify for the said d....