Case Law Details
ITO Vs Moonrock Hospitality (P) Ltd. (ITAT Delhi)
It is observed from the assessee’ s Profit & Loss Account that there is only one item of expenditure of Rs.6,230/- which has been booked in the accounts and there is no exempt income earned by the assessee. We find that the question of disallowance u/s 14A when there is no exempt income is no more res integra in view of the judgment of the Hon’ble jurisdictional High Court in the case Cheminvest Ltd. vs. CIT (2015) 378 ITR 33 (Del), wherein it has been held that if there is no exempt income, there can be no question of making any disallowance u/s 14A. Similar view has been taken by the Hon’ble jurisdictional High Court in CIT vs. Holcim India P. Ltd. (2014) 90CCH 081-Del-HC. In view of these binding precedents providing for not making any disallowance u/s 14A in the absence of any exempt income, which are squarely applicable to the facts of the instant case, we uphold the view taken by the ld. CIT(A) on this issue.
FULL TEXT OF THE ITAT JUDGMENT
This appeal filed by the Revenue and the Cross Objection by the assessee arise out of the order passed by the CIT(A) on 24.10.20 16 in relation to the assessment year 2013- 14.
2. The only issue raised by the Revenue in its appeal is against deletion of the disallowance of Rs.1,08,61,430/- made by the Assessing Officer u/s 14A of the Act.
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