Case Law Details
M/s Adhunik Metaliks Ltd. Vs ACIT (ITAT Kolkata)
It is not in dispute that the assessee has not derived any exempt income in the form of dividend during the year. The provisions of section 14A of the Act could be put in motion only when there is exempt income and if certain expenses were debited by the assessee in its profit and loss account for the purpose of earning such income. This is very clear from the wordings of the said section. In the instant case, admittedly, the assessee has not derived any exempt income. Hence, the provisions of section 14A of the Act cannot be invoked at all in the instant case.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
1. This appeal by the revenue arises out of the order of the Learned Commissioner of Income Tax(Appeals)-20, Kolkata [in short the ld CIT(A)] in Appeal No.1044/CIT(A)-20/CC-1(1)/15-16 dated 25.07.2016 against the order passed by the ACIT, CC-1(1), Kolkata [ in short the ld AO] under section 143(3) of the Income Tax Act, 1961 (in short “the Act”) dated 29.07.2015 for the Assessment Year 2013-14.
2. The only solitary issue to be decided in this appeal is as to whether the Ld. CIT(A) was justified in deleting the disallowance made u/s 14A of the Act, in the facts and circumstances of the case. The revenue raised the following grounds of appeal:
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