2025 (2) TMI 1392

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....Chandra Sinha, Sr. DR ORDER PER B.R. BASKARAN, A.M : The assessee has filed this appeal challenging the order dated 21-11-2024 passed by the Ld CIT(A), NFAC, Delhi [Ld.CIT(A)] and it relates to the Assessment Year (AY.) 2017-18. Following issues are urged in this appeal:- (a) Disallowance made u/s 14A of the Act (b) Disallowance of finance cost. (c) Addition mad....

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....ance Act, 2022, wherein it has been stated that the disallowance u/s 14A is required to be made, even if the assessee did not earn any exempt income. The Ld D.R submitted that the above said amendment has been brought with retrospective effect and accordingly, would apply to the year under consideration. 3.2. However, we notice that the said amendment has been held to be prospective in nature b....

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....he same. He submitted that the own funds available with the assessee is in far excess of the above said loan and hence no disallowance of interest is called for, as the presumption is that the above said interest free loan has been given out of own funds. 4.1. We heard the parties on this issue and perused the record. From the Balance sheet of the assessee, we notice that the own funds availabl....

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.... 14A of the Act at Rs. 1,22,50,910/-. He added the above said amount to the net profit under clause (f) of Explanation to sec.115JB of the Act for the purpose of computing book profit. The Ld CIT(A) also confirmed the same. 5.1. First of all, the AO is not correct in adopting the disallowance amount computed u/s 14A of the Act for the purpose of sec.115JB. It is so held by the Delhi Special Ben....