M/s. Tapi Prestressed Products Ltd, Jalgaon V. Deputy Commissioner of Income-tax, Circle - 2, Jalgaon

ITA 1661/PUN/2018

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 0029 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 3 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-01-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 15-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE – VIRTUAL COURT BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER ITA No. 1661/PUN/2018 नधा रण वष / Assessment Year : 2013-14 M/s. Tapi Prestressed Products Ltd., Shiwar, Bhusawal, Dist. Jalgaon – 425 301 PAN : AAACT6669D Vs. DCIT, Circle-2, Jalgaon Appellant Respondent आदेश / ORDER PER R.S.SYAL, VP : This appeal by the assessee arises out of the order passed by the CIT(A) on 02-07-2018 in relation to the assessment year 2013-14. 2. The only issue raised in this appeal through various grounds is against the confirmation of disallowance of Rs.62,34,039/- made by the Assessing Officer (AO) u/s.14A of the Income-tax Act, 1961. 3. Tersely, the facts of the case are that the assessee did not offer any disallowance u/s.14A. Applying Rule 8D of the Assessee by None Revenue by Shri S.P. Walimbe Date of hearing 18-01-2022 Date of pronouncement 18-01-2022 ITA No. 1661/PUN/2018 M/s. Tapi Prestressed Products Ltd., 2 Income-tax Rules, 1962, the AO computed disallowance at Rs.62,34,039/-. The assessee contended before the ld. CIT(A) that no exempt income was earned during the year. Not convinced, the ld. CIT(A) upheld the addition, against which the assessee has come up in appeal before the Tribunal. 4. We have heard the ld. DR and perused the relevant material on record. There is no appearance from the side of the assessee despite notice. We are, therefore, proceeding to dispose of the appeal ex parte qua the assessee. It is found as an admitted position as has also already been recorded in the impugned order that the assessee did not earn any exempt income during the year. Despite that, the AO has computed disallowance u/s.14A amounting to Rs.62,34,039/-. 5. The Hon'ble Delhi High Court in Cheminvest Ltd. vs. CIT (2015) 378 ITR 33 (Del) has held that if there is no exempt income, there can be no question of making any disallowance u/s 14A of the Act. Similar view has been taken by the Hon'ble Delhi High Court in CIT vs. Holcim India P. Ltd. (2014) 90CCH 081-Del-HC. More recently the Hon’ble jurisdictional High Court in Pr. CIT VS. Kohinoor Projects Pvt. Ltd. (2020) 425 ITR 700 (Bom) has held that in the ITA No. 1661/PUN/2018 M/s. Tapi Prestressed Products Ltd., 3 absence of any exempt income, there cannot be any disallowance of expenses u/s 14A of the Act. As the assessee in the instant case did not earn any exempt income, respectfully following the precedent, we hold that no disallowance was called for. The impugned order is overturned and the sustenance of the disallowance is deleted. 6. In the result, the appeal is allowed. Order pronounced in the Open Court on 18 th January, 2022. Sd/- Sd/- (S.S.VISWANETHRA RAVI) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT प ु णे Pune; दनांक Dated : 18 th January, 2022 Satish आदेश क त ल प अ े षत/ Copy of the Order is forwarded to: 1. अपीलाथ / The Appellant; 2. यथ / The Respondent; 3. 4. The CIT(A)-2, Nashik The Pr.CIT-2, Nashik 5. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, पुणे “A” / DR ‘A’, ITAT, Pune 6. गाड फाईल / Guard file आदेशान ु सार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune ITA No. 1661/PUN/2018 M/s. Tapi Prestressed Products Ltd., 4 Date 1. Draft dictated on 18-01-2022 Sr.PS 2. Draft placed before author 18-01-2022 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *