TABLEZ FOOD COMPANY PRIVATE LIMITED,KOCHI V. CORPORATE CIR 2(1), KOCHI

ITA 831/COCH/2025

AI Insights

Tablez Food Company Pvt. Ltd., engaged in the restaurant business, filed an appeal against the order of the Commissioner of Income Tax (Appeals), Panaji, which confirmed the AO's disallowance of Rs. 1,51,800 under section 14A of the Income Tax Act, 1961. The disallowance was initially made during the assessment for the year 2016-17, where the company declared a loss. The main legal contention was whether a disallowance under section 14A could be made in the absence of any exempt income. The Tribunal, referencing several judgments, concluded that such a disallowance is not permissible without the presence of exempt income, thus allowing the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 790197 (ITAT-COCHIN)
• Duration Of Justice: 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: misc
• Appeal Filed On: 31-10-2025
• Other Referred Cases: CIT vs. Tamilnadu Road Development Company Ltd (2021) 435 ITR 323 (Mad.), Tamil Nadu Development Co Ltd vs. DCIT, 436 ITR 298, PCIT vs. Nam Estates P Ltd, 434 ITR 154
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NEETHU S.
• Keywords: Earning of tax free income
• Section: 143(3); 14A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM ITA No. 831/Coch/2025 Assessment Year: 2016-17 Tablez Food Company Pvt. Ltd. .......... Appellant 971/B Y Tower, MKK Nair Road Vazhakkala, Kochi 682030 [PAN: AADCT6643G] vs. ITO, Corporate Ward -2(4), Kochi .......... Respondent Assessee by: ------- None ------- Revenue by: Ms. Neethu S. Sr. DR Date of Hearing: 27.11.2025 Date of Pronouncement: 28.11.2025 O R D E R This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals), Panaji [CIT(A)] dated 29.08.2025 for Assessment Year (AY) 2016-17. 2. Brief facts of the case are that the appellant is a private limited company engaged in the business of running of restaurants. The appellant filed the return of income for AY 2016-17 on 15.10.2016 declaring loss of Rs. 3,30,247/-. Against the said return of income, the assessment was completed by the Income Tax Officer, Corporate Ward – 2(4), Kochi (hereinafter called \"the AO\") vide order dated Printed from counselvise.com 2 ITA No. 831/Coch/2025 Tablez Food Company Pvt. Ltd. 11.12.2018 passed u/s. 143(3) of the Income Tax Act, 1961 (the Act) at a loss of Rs,. 1,26,000/-. While doing so, the AO made disallowed Rs. 1,51,800/- u/s. 14A of the Act. 3. Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the AO. 4. Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal. 5. I heard the rival contentions and perused the material available on record. The issue that arises for my consideration is whether the CIT(A) was justified in confirming the disallowance u/s. 14A of the Act even in the absence of any exempt income. Now, it is a settled position of law that in the absence of exempt income, no disallowance u/s. 14A of the Act can be made. Reliance in this regard is placed on the following judgments: (1) CIT vs. Tamilnadu Road Development Company Ltd (2021) 435 ITR 323 (Mad.) (2) Tamil Nadu Development Co Ltd vs. DCIT, 436 ITR 298 (3) PCIT vs. Nam Estates P Ltd, 434 ITR 154 7. Respectfully following the ratio of the above decisions, we hold that the AO was not justified in making the disallowance u/s. 14A in the absence of exempt income. Printed from counselvise.com 3 ITA No. 831/Coch/2025 Tablez Food Company Pvt. Ltd. 8. In the result, appeal filed by the assessee is allowed. 6. Order pronounced in the open court on 28th November, 2025. Sd/- (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 28th November, 2025 n.p. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File Assistant Registrar ITAT, Cochin Printed from counselvise.com "