No Section 14A Disallowance if Assessee has not claimed any exempt Income
The main dispute and ground agitated by the assessee before the Tribunal was pertaining to disallowance and addition made by the AO by invoking the provisions of section 14A read with Rule 8D(2)(iii) of the IT Rules. Further, in the Tribunal order, the submission of the assessee was recorded that. 04ssessee,company has not received any income during the year, which is exempt and does not form part of total taxable income of the. assessee. However, we note that the Tribunal order was passed on 21.03.2014 and the order of Hon’ble jurisdictional High Court in the case of CIT vs. Holicim India (P) Ltd. (supra) was rendered on 05.09.2014, subsequent to the Tribunal order, but as per the proposition laid down by Hon’ble Gujrat High Court in the case of ACIT vs. Saurashtra Kutch Stock Exchange Ltd. (supra), non-consideration of judgment of jurisdictional High Court would always constitute a mistake apparent from record and it is not relevant factor whether the judgment was rendered prior or subsequent to the order of the Tribunal. In the instant case, though the order of Hon’ble jurisdictional High Court was passed subsequent to the Tribunal order, but in the light of dicta / proposition, laid down by Hon’ble Delhi High Court in the case of CIT vs. Holcim India (P) Ltd. (supra), no disallowance can be made when there is no exempted income earned by assessee and now it is settled law that the provisions of section 14A read with Rule 8D cannot be invoked when the assessee has not claimed any exempt income.
In the light of our foregoing discussion, we are of the considered view that that non consideration of proposition laid down by Hon’ble jurisdictional High Court Delhi in the case of CIT vs. Holcim India (P) Ltd., reported as (2014) 90 CCH 0081 (Delhi H.C.) is an apparent mistake in the order of the Tribunal. Therefore, we find it appropriate to recall the order of the Tribunal and we order accordingly.