| The Tax Publishers2019 TaxPub(DT) 7813 (Bang-Trib) INCOME TAX ACT, 1961
Section 14A
It is now settled position of law that in the absence of exempt income, provisions of section 14A cannot be invoked.
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Disallowance under section 14A - Expenditure against exempt income - Validity of disallowance in absence of any exempt income earned by assessee -
Assessee challenged disallowance made under section 14A when no exempt income was earned by assessee. Held: Profit and loss account of assessee implied that gross income included sales of products, interest received, excess provision written off and service income. Thus, it was found that there was no exempt income earned by assessee in relevant year. It is now settled position of law that in the absence of exempt income, provisions of section 14A cannot be invoked.
Relied:Munjal Sales Corporation v. CIT (2008) 298 ITR 298 (SC) : 2008 TaxPub(DT) 1671 (SC), Pr. CIT v. Mcdonald's India Pvt. Ltd. (2019) 101 taxmann.com 86 (Delhi) : 2018 TaxPub(DT) 7511 (Del-HC), CIT v. Gujarat Industrial Development Corporation Ltd & 1 (2014) 218 Taxman 742 (Guj) : 2014 TaxPub(DT) 2653 (Guj-HC), CIT v. Kribhco (2012) 349 ITR 618 (Del) : 2012 TaxPub(DT) 2742 (Del-HC), Maxopp Investment Ltd. & Others v. CIT (2011) 347 ITR 272 (Del) : 2011 TaxPub(DT) 2171 (Del-HC), CIT v. Dhanalakshmy Bank Ltd. (2011) 10 taxman.com 213 (Ker) : 2011 TaxPub(DT) 0564 (Ker-HC), Godrej And Boyce Mfg. Co. Ltd. v. DCIT & Anr. (2010) 328 ITR 81 (Bom) : 2010 TaxPub(DT) 2182 (Bom-HC), CIT v. Hero Cycles Ltd. (2010) 323 ITR 518 (P&H) : 2010 TaxPub(DT) 0960 (P&H-HC), CIT v. Winsome Textile Industries Ltd. (2009) 319 ITR 204 (P&H) : 2009 TaxPub(DT) 2012 (P&H-HC), CIT v. M/s. Delite Enterprises [ITA No. 110 of 2009, dt. 26-2-2009] : 2012 TaxPub(DT) 2611 (Bom-HC), CIT v. Reliance Utilities & Power Ltd. (2009) 313 ITR 340 (Bom) : 2009 TaxPub(DT) 1275 (Bom-HC), CIT v. Walfort Share & Stock Brokers Pvt. Ltd. (2009) 310 ITR 421 (Bom) : 2009 TaxPub(DT) 0724 (Bom-HC), CIT v. Hotel Savera (1999) 239 ITR 796 (Mad) : 1999 TaxPub(DT) 0266 (Mad-HC), Dy. CIT v. M/s. Axiscades Aerospace & Technologies Pvt. Ltd. [ITA No. 314/Bang/2018 dated 31-5-2018], M/s. John Distilleries Ltd. v. DCIT [ITA No.1429/Bang/2014, ITA No.1565Bang/2014, dt. 24-2-2016], DCM Ltd. v. DCIT [I.T.A .No. 4467/Del/2012, I.T.A .No. 5176/Del/2012, dt. 1-9-2015] : 2015 TaxPub(DT) 4965 (Del-Trib), Hercules Hoists Ltd. v. ACIT [ITA 7944,7946,2252 & 7943/Mumbai/2001, dt. 13-2-2013] : 2013 TaxPub(DT) 0812 (Mum-Trib), DCIT v. Philips Carbon Black Ltd. (2012) 133 ITD 189 (Kol) : 2012 TaxPub(DT) 0600 (Kol-Trib)
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
IN THE ITAT, BANGALORE BENCH
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