No Exempt Income Means No 14A: 270A Penalty Cannot Survive When Quantum Dies

ACIT Vs HCC Infrastructure Company Ltd. (ITAT Mumbai) No Exempt Income, No 14A, No 270A- 14A Disallowance Deleted in Quantum — 270A Penalty Cannot Survive When Quantum Dies, Penalty Revenue filed appeals against CIT(A)’s common orders dated 04.07.2025 deleting penalty u/s 270A for both AYs 2017-18 & 2018-19. Assessee, engaged in infrastructure development on BOT basis, had claimed no exempt income during the relevant years. AO nevertheless made disallowance of ₹8,60,51,556 u/s 14A r.w. Rule 8D for AY 2017-18 (& similar for AY 2018-19), which was initially confirmed by CIT(A). AO ...