2022 (11) TMI 882

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....This appeal is filed by assessee against the appellate order passed by the CIT(A) 47 Mumbai [learned CIT (A)] dated 04.05.2022 for A.Y. 2014-15 against appeal of assessee challenging the assessment order passed under section 143(3) of the Income Tax Act, 1961 dated 27.12.2016 wherein disallowance under section 14A read with rule 8D of Rs.76,22,179/- was dismissed. The assessee has raised the follo....

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....n equity shares of associate companies amounting to Rs.17,50,57,760/-, on scrutiny the learned Assessing Officer noted that this investment income may result exempt income. However, the learned Assessing Officer also recorded a fact that during the year the company has not earned any exempt income during the year, but this investment are likely to result into exempt income in the hands of the asse....

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....ection 14A of the Act provide for disallowance of the expenditure even where taxpayer in a particular year has not earned any exempt income. Accordingly, he worked out disallowance of Rs.76,22,179/- and passed assessment orders under section 143(3) of the Act on 27.12.2016 determining the total income of the assessee at Rs.2,62,03,436/-. 03. Assessee aggrieved with the assessment order preferred ....

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....refully considered the rival contention and pursued the orders of the lower authorities. We find that during the year the assessee has not earned any exempt income. As it is held by Hon'ble Delhi High Court in Era Infrastructure India Limited (Supra) that there cannot be disallowance in the hands of the assessee as the amendment made by the Finance Act, 2022 to section 14A by inserting a non obsta....