2024 (10) TMI 479

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..../s 14A of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'). 3. Facts of the case in brief, are that the assessee is a company engaged in manufacturing of tractors, agricultural equipments like harvesters, micro irrigation equipments and spare parts. It has also technology centre which is primarily involved into catering of information technology and engineering services to Deer Associates. It filed its return of income on 29.11.2016 declaring total income of Rs. 775,75,65,910/-. The case was selected for scrutiny through CASS and accordingly statutory notices u/s 143(2) and 142(1) of the Act were issued and served on the assessee, in response to which the assessee filed the requisite details from time to time. 4. During th....

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....by observing as under: "2.3 I have carefully considered the facts of the case and submission filed by the appellant. As seen from records, the said investment in the equity shares of the subsidiary has been made in the earlier AY 2012-13 and no new investment has been made by the assessee company during the year under consideration. The AO has not rebutted the appellant's submission that the investment was out of appellant's own funds and there has been no interest expenditure for this investment as per decision of Bombay High Court in the case of HDFC Bank Ltd. 366 ITR 505. Secondly, the appellant has not earned any exempt income during the relevant financial year. It is also seen that the similar issue of disallowance u/s....

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..... (supra). Accordingly, I direct the A.O. to delete the addition of Rs. 148,77,912/- made on this account. UNQUOTE" Following the above decisions, the appeal on these grounds of appeal is allowed." 7. Aggrieved with such order of CIT(A), the Revenue is in appeal before the Tribunal. 8. The Ld. DR heavily relied on the order of the Assessing Officer. 9. The Ld. Counsel for the assessee on the other hand relied on the order of the CIT(A) and submitted that when there is no dividend income received, there cannot be any disallowance u/s 14A. Since the CIT(A) has followed the decision of the Hon'ble Supreme Court cited (supra) therefore, the same should be upheld and the grounds raised by the Revenue should be dism....