IN THE ITAT, MUMBAI BENCH
G.S. PANNU, P., & SANDEEP SINGH KARHAIL, J.M.
Dy. CIT v. Mahan Synthetics Textiles (P) Ltd.
ITA No. 1376/MUM./2023
27 July, 2023
Assessee by: Vipul Jain
Revenue by: Mahita Nair
The present appeal has been filed by the Revenue challenging the impugned Order dated 4-3-2023, passed under section 250 of the Income Tax Act, 1961 ('the Act') by the learned Commissioner (Appeals), National Faceless Appeal Centre, Delhi, (learned CIT (A)), for the assessment year 2013-14.
2. In this appeal, the Revenue has raised the following grounds:
(1) On the facts and in the circumstances of the case and in law, the learned Commissioner (Appeals) has erred in deleting the disallowance under section 14A without considering the fact that the assessee has earned exempt income and assessing officer has rightly invoked the section 14A read with rule 8D.
(2) On the facts and in the circumstances of the case and in law, the learned Commissioner (Appeals) has erred in deleting the disallowance under section 14A without appreciating the fact that Circular No. 5/2014 issued by Central Board of Direct Taxes categorically mandates the disallowance of expenditure for earning exempt income under section 14A read with section 8D even if the corresponding exempt income has not been earned during the year.