2021 (1) TMI 1367

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....one ORDER PER MAHAVIR SINGH, VICE-PRESIDENT; 1. This appeal by revenue is arising out of the order of Commissioner of Income Tax (Appeals)-53, Mumbai [for short 'the ld. CIT(A)] in Appeal No. CIT(A)-53/IT-299/DCCC-5(2)/2016-17 order dated 16.07.2018. Assessment was framed by DCIT CC-5(2), Mumbai under section 143(3) of the Income Tax Act, 1961 (hereinafter 'the Act') for the Assessment Ye....

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....come Tax Act, 1961 by ignoring the provisions of CBDT Circular no. 5/2014 dated 11.02.2014 wherein, it has been clarified that the Rule 8D r.w.s.14A provides for disallowance of expenditure even where the assessee in particular has not earned exempt income?" 3. "Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition u/s 14A of the ....

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.... disallowed total expenditure at Rs. 2,43,25,406/-. Before the CIT(A), the assessee claimed that there is no exempt income during the year and hence, no disallowance should be made. We noted that the CIT(A) has deleted the disallowance by observing in para-5.9 as under: 5.9. I have considered the submissions carefully. I am inclined to accept the alternative plea of the appellant based on....

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....llowing the ratio of above decision, it is held that the A.O. was not justified in making disallowance u/s.14A r.w. Rule 8D(2). The disallowance so made by the A.O. is directed to be deleted. Accordingly, Ground of Appeal No.3 is partly allowed. 4. When this fact was confronted to ld. Sr. DR, he could not controvert the above fact. Once there is no exempt income, the issue is squarely covered b....