JCIT (OSD), Range-1, Hyderabad v. Aamoda Publications Private Limited
[Citation -2019-LL-0905-59]
| Citation | 2019-LL-0905-59 |
|---|---|
| Appellant Name | JCIT (OSD), Range-1, Hyderabad |
| Respondent Name | Aamoda Publications Private Limited |
| Court | ITAT-Hyderabad |
| Relevant Act | Income-tax |
| Date of Order | 05/09/2019 |
| Assessment Year | 2014-15 |
| Judgment | View Judgment |
| Keyword Tags | business income • grant relief • mat provision • set-off of losses • expenditure incurred in relation to the exempt income |
| Bot Summary: | Brief facts of the case are that the assessee-company filed its return of income for the A.Y. 2014-15 on 26/09/2014 declaring a business income of Rs. 4,28,90,610/- after set-off of earlier years losses of Rs. 4,42,81,985/- under normal provisions and Rs. 4,09,21,236/- 2 under MAT provisions of the Act. The assessee was therefore asked to explain and the assessee explained that no exempt income is debited while computing the taxable income and therefore disallowance U/s. The Assessing Officer however was not convinced with the assessee s contentions and held that for invoking the provisions of section 14A, it is not material that the assessee should have earned such exempt income during the financial year under consideration and applied Rule 8D and calculated the disallowance U/s. Aggrieved, assessee filed an appeal before the Ld. CIT(A), who granted relief to the assessee by holding that the disallowance U/s. 14A is not called for when there is no exempt income earned by the assessee during the relevant assessment year. The Ld. CIT(A) relied upon the decision of the Hon ble Delhi High Court in the case of Cheminvest Ltd vs. CIT. Against the relief granted by the Ld. CIT(A), the Revenue is in appeal before us. The Ld. DR relied upon the order of the A.O. as well as the Learned Counsel for the Assessee supported the order of the Ld. CIT(A). |