TaxTMI 
TaxTMI 
TaxTMI 
2023 (8) TMI 872
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.... The return of income was processed under section 143(1) of the Income Tax Act, 1961 ["Act" in short] dated 15.03.2013. Thereafter, the case was selected for scrutiny through and notice under section 143(2) of the Act dated 23.09.2013 was issued and duly served on the assessee. After considering the submissions of the assessee, the Assessing Officer has completed the assessment under section 143(3) of the Act dated 27.03.2015 by making additions towards disallowance under section 14A of the Act of Rs.. 39,61,902/-, disallowance of ROC fees of Rs.. 72,412/- and addition made towards TDS difference of Rs.. 2,18,830/-. 3. With regard to the disallowance under section 14A of the Act, from the details furnished by the assessee, the Assessing Of....
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....IT(A). 6. Heard both the sides, perused the materials available on record and gone through the orders of authorities below. In this case, the assessee has not earned any exempt income. However, the ld. CIT(A) confirmed the addition made towards disallowance under section 14A of the Act by considering the amendment brought out in the Finance Act, 2022 to the provisions under section 14A of the Act as retrospective. Whereas, perusal of the Memorandum of the Finance Bill, 2022 reveals that it explicitly stipulates that the amendment made to section 14A of the Act will take effect from 1st April, 2022 and will apply in relation to the assessment year 2022-23 and subsequent assessment years. Similar issue was subject matter in appeal before the....
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....ng the said previous year in relation to such exempt income. 5. This amendment will take effect from 1st April, 2022. 6. It is also proposed to amend sub-section (1) of the said section, so as to include a non-obstante clause in respect of other provisions of the Income-tax Act and provide that no deduction shall be allowed in relation to exempt income, notwithstanding anything to the contrary contained in this Act. 7. This amendment will take effect from 1st April, 2022 and will accordingly apply in relation to the assessment year 2022- 23 and subsequent assessment years." (emphasis supplied) 6. Furthermore, the Supreme Court in Sedco Forex International Drill. Inc. v. CIT, (2005) 12 SCC 717 has held that a retrospective pro....
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....378 ITR 33. 10. Accordingly, the appeal and application are dismissed. However, it is clarified that the order passed in the present appeal shall abide by the final decision of the Supreme Court in the SLP filed in the case of PCIT vs. IL & FS Energy Development Company Ltd (supra). 7. After hearing rival contentions and going through the decision of Hon'ble Delhi High Court in the case of Era Infrastructure (India) Ltd., supra, we are of the view that the explanation inserted in the provisions of section 14A of the Act by the Finance Act, 2022 is prospective and not retrospective. Accordingly, since the assessee has not earned any exempt income, no disallowance can be resorted 11 ITA No.139/Chny/2020 by invoking the provisions of sec....
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....of ROC fees and depited to the profit and loss account. However, the Assessing Officer has treated the expenses as capital in nature and disallowed. It was further submission that once the Assessing Officer has treated the expenses as capital in nature, depreciation has to be allowed. 10. On the other hand, the ld. DR fairly conceded that the matter may be remitted back to the Assessing Officer for fresh consideration. 11. Heard both the sides, perused the materials available on record and gone through the orders of authorities below. Due to increase in share capital, the assessee has incurred expenses on account of ROC fees and the Assessing Officer has treated the same as capital in nature and disallowed the claim of the assessee, which....