Case Law Details
OJAS Industries Pvt. Ltd. Vs ACIT (ITAT Delhi)
In a noteworthy decision, the Income Tax Appellate Tribunal (ITAT) Delhi has ruled in favor of OJAS Industries Pvt. Ltd. in their appeal against an order issued by the National Faceless Appeal Centre (NFAC), Delhi. The appeal pertains to the Assessment Year 2017-18 and revolves around the disallowance made under Section 14A of the Income-tax Act, 1961, read with Rule 8D.
The Disallowance Issue
The crux of the matter lies in the disallowance of Rs. 92,94,564/- made by the Assessing Officer under Section 14A. The Assessing Officer based this disallowance on the potential of the investments made by OJAS Industries Pvt. Ltd. to yield exempt income in the future. While the company contested this disallowance, stating that no exempt income was earned during the relevant previous year, the departmental authorities upheld the disallowance.
ITAT’s Verdict
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