The Delhi High Court dismissed an income-tax appeal challenging the ITAT decision that sustained the assessee, holding that a Section 14A disallowance of expenses which generated no tax-exempt income is not justified.
Appeal dismissed against ITAT order sustaining assessee on Section 14A issue.
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.
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versus
RAGLAN INFRASTRUCTURE LTD. ..... Respondent Through None.
CORAM:
HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE A. K. CHAWLA
O R D E R
% 01.05.2018
In the present appeal, the Revenue is aggrieved by the order of the ITAT which held that the disallowance made by the Revenue Authorities (AO) under Section 14A was unjustified and not in accordance with law.
The Revenue’s Appellate Authority and the Tribunal noticed that in the given assessment year concerning to the assessee, as a matter of fact, no tax exempt income had been derived so as to attract Section 14A. By applying the ratio of the judgment of this Court in Cheminvest Ltd. v. Commissioner of Income Tax [2015] 378 ITR 33 (Del), the Tribunal held that the disallowance was not justified. This Court notices that this view has been subsequently endorsed in other decisions as well. Therefore, no question of law arises and appeal is accordingly dismissed.
S. RAVINDRA BHAT, J
A. K. CHAWLA, J
MAY 01, 2018/ndn
2 issues framed by the court
Whether the Tribunal disposed correctly of the disallowance under Section 14A in the absence of tax-exempt income.
Whether appeal lies against the Tribunal holding that disallowance was unjustified.
Colour shows how this judgement treated each authority
Cheminvest Ltd. v. Commissioner of Income TaxRelied on¶11
[2015] 378 ITR 33 (Del)
1 provisions across 1 enactments
Principal Commissioner of Income Tax-7
Raglan Infrastructure Ltd.
S. Ravindra Bhat
A. K. Chawla
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
