The High Court allowed the appeal challenging the ITAT order, as the ITAT had correctly followed Cheminvest judgment that disallowance under Section 14A cannot be made without exempt income.
The Revenue's appeal is dismissed for lack of substantial question of law.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
$~28
PR COMMISSIONER OF INCOME TAX- 18 ..... Appellant Through: Mr. Zoheb Hossain, Sr. Standing Counsel.
versus
OIL INDUSTRIES DEVELOPMENT BOARD ..... Respondent Through:
CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE A. K. CHAWLA
The Revenue’s appeal challenges an order of the Income Tax Appellate Tribunal (ITAT) which had set aside the disallowance of `1,62,49,000/- under Section 14A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).
The Assessing Officer (AO) and later the CIT (A) made the disallowance by taking into account only the investment patterns of the assessee for the concerned assessment.
The ITAT relied upon the ruling of this Court in Cheminvest Limited vs. Commissioner of Income Tax-VI, (2015) 378 ITR 33 which ruled in the absence of any exempt income, disallowance under Section 14-A of the Act of any amount was not permissible. Since the decision in Cheminvest Limited (supra) was followed, there is no substantial question of law that requires consideration.
The appeal is therefore dismissed.
S. RAVINDRA BHAT, J
A. K. CHAWLA, J
FEBRUARY 16, 2018 nn
1 issue framed by the court
Whether disallowance under Section 14A of the Income Tax Act, 1961 is permissible in the absence of exempt income of the assessee.
Colour shows how this judgement treated each authority
Cheminvest Limited vs. Commissioner of Income Tax-VIFollowed¶12
(2015) 378 ITR 33
1 provisions across 1 enactments
PR Commissioner of Income Tax- 18
Oil Industries Development Board
S. Ravindra Bhat
A. K. Chawla
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
