2026 (6) TMI 737

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Sri. Nishant Agarwal JCIT ORDER 1. The assessee has filed the present appeal against the impugned order dated 10.11.2025, passed under section 250 of the Income Tax Act, 1961 ("the Act") by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi ["learned CIT(A)"], for the assessment year 2020-21. 2. The solitary grievance of the assessee is against the di....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n account of finance cost amounting to Rs. 31,69,44,000/-. Accordingly, the assessee was asked to show cause as to why the disallowance under section 14A of the Act should not be made. In response, the assessee submitted that it did not earn any exempt income during the year under consideration and therefore no disallowance under section 14A of the Act is unwarranted. 4. The Assessing Officer (....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he assessee claims that the disallowance under section 14A is unwarranted. We find that the Hon'ble Delhi High Court in Cheminvest Ltd. vs. CIT, reported in (2015) 378 ITR 33 (Del.), held that section 14A of the Act will not apply if no exempt income is received or receivable during the relevant previous year. We further found that the Hon'ble Bombay High Court in PCIT vs. Kohinoor Project Pvt. Lt....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ective in operation, the Hon'ble Delhi High Court in PCIT vs. M/s. Era Infrastructure (I) Ltd., reported in (2022) 288 Taxman 384 (Del.), held that the amendment by the Finance Act, 2022, in section 14A of the Act is prospective and will apply in relation to the assessment year 2022-23 and subsequent years. Thus, in view of the aforesaid amendment, the disallowance under section 14A of the Act, re....