Case Law Details
Addl. CIT Vs TV Today Network Ltd. (ITAT Delhi)
The Ground in respect of deleting disallowance of Rs. 56,20,737/- u/s 14A of the Act on the ground that disallowance u/s 14A cannot exceed exempt income. The issue involved in Ground No. 2 is also decided in favour of the assessee in ITA No. 7277/Del/2018 for Assessment Year 2013-14. The facts of the case are that the A.O invoking provision of Section 14A of the Act, made disallowance of Rs. 56,27,37/- while making the said disallowance the Ld. A.O has recorded clear finding that “the controversy raised in the instant case was the assessee had not earned or received any dividend in the year under consideration. Therefore, no disallowance can be made by invoking the provision of Section 14A.”
The Ld.CIT(A) after relying on the ratio laid down by the various Courts including Jurisdictional High Court held that disallowance u/s 14A made only if the assessee is in receipt of exempt income. As the assessee company has not received any exempt income during the year under consideration, therefore, the question of disallowance u/s 14A of the Act does not arise. Therefore, in the facts and circumstances and also by following the order of this Tribunal in assessee’s own case for Assessment Year 2013-14 (supra), we do not find merit in Ground of the Revenue’s Appeal.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal is filed by the Revenue against the order dated 31.01.2019 of the ld. Commissioner of Income Tax (Appeals)–16, New Delhi [hereinafter referred to CIT (Appeals)] for Assessment Year 2014-15.
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