TaxTMI 
TaxTMI 
2026 (7) TMI 1821
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....er section 260A of the Income Tax Act, 1961 [for short 'the Act'] arising out of a common Judgement and Order dated 31.05.2022 passed by the Income Tax Appellate Tribunal, B Ahmedabad Bench, in ITA No. 1470/Ahd/2019 for the Assessment Year 2012-13 proposing the following substantial questions of law: "(i) Whether on the facts and in the circumstances of the case and in law, the ITAT has erred in upholding the decision of CIT(A) of deletion of disallowance of Rs. 29,03,478/- under Section 14A of the Act? (ii) Whether on and facts the in the circumstances of the case and in law, the ITAT has erred in upholding the decision of CIT(A) of deletion of the adjustment made in book profit u/s. 115JB of the Act without appreciating ....
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....investment, however, was offered by the assessee as required by the provisions of Section 14A of the Act read with Rule 8D. In this regard, the explanation offered by the assessee that there being no exempt income actually earned during the year under consideration on the investment in question, the disallowance under Section 14A of the Act is not warranted was not found acceptable by the Assessing Officer and by relying inter alia on the decision of the Delhi Special Bench of ITAT in the case of Cheminvest Ltd vs. ITO (ITA No. 87/Del/2008) as well as CBDT Circular No. 5/2014 dated 11.02.2014, he proceeded to make a disallowance of Rs. 29,03,478/-under Section 14A of the Act on account of expenses incurred in relation to the investment of R....
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....as fully justified in deleting the disallowance made by the Assessing Officer under Section 14A r.w. Rule 8D by relying on the decision of Hon'ble jurisdictional High Court in the case of Corrtech Energy Pvt. Ltd. (supra) and upholding his impugned order giving relief to the assessee on this issue, we dismiss Ground No. 1 of the Revenue's appeal." 4. In view of the finding of fact arrived at by the Tribunal that no exempt income under tax was actually earned by the assessee during the year under consideration and no exemption was claimed in respect of any income in the return of income for the year under consideration and since the Tribunal has followed the decision in the case of CIT vs. Corrtech Energy Pvt. Ltd reported in (201....
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.... this issue and also perused the relevant material available on record. The learned DR in support of the Revenue's case on this issue has mainly relied on the order of the Assessing Officer. The learned Counsel for the assessee, on the other hand, has contended that this issue is squarely covered in favour of the assessee by the various judicial pronouncements which have been referred to and discussed in details by the learned CIT(A) in his impugned order while giving relief to the assessee. As submitted by him, the assessee company had taken rupee term loan and with a view to reduce effective rate of interest from 11.75% to 6.67%, it entered into Principal Only Swap (POS) contract with ICICI Bank Ltd and Axis Bank Ltd to convert the Ru....