Case Law Details
M/s. UB Infrastructure Projects Limited Vs. DCIT (ITAT Bangalore)
Undisputedly the assessee has not earned any exempted income. Now it is settled position of law that whenever assessee did not earn any exempt income, no dis allowance could be made u/s. 14A of the Act. The Hon’ble Delhi High Court in the case of Cheminvest Ltd. v. CIT, 378 ITR 33 (Del) has categorically held that section 14A envisages that there should be actual receipt of income which was not includible in the total income during the relevant previous year for the purpose of disallowing any expenditure in relation to the said income. Wherever there is no exempt income includible in the total income of the assessee, the provisions of section 14A cannot be invoked.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
This appeal is preferred by the assessee against the order of CIT(Appeals)-7, Bengaluru, inter alia, on the following grounds:
1. That the order of the assessing officer in so far as it is against the appellant is against the law, facts, circumstances, natural justice, equity, without jurisdiction, bad in law and all other known principles of law.
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