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1 - 10 of 22 (0.25 seconds)Section 14A in The Income Tax Act, 1961 [Entire Act]
Pr. Commissioner Of Income Tax ... vs M/S Era Infrastructure (India) Ltd. on 20 July, 2022
(D.2) Whether the aforesaid explanation to section 14A of the Act is
retrospective or prospective has been considered by various Hon'ble
High Courts in the cases reported as Pr. CIT vs. Era Infrastructure
(India) Ltd. [2022] 141 taxmann.com 289 (Delhi), Williamson
Financial Services Ltd. vs. CIT [2024] 166 taxmann.com 607 (Gauhati)
and Pr. CIT vs. Avantha Realty Ltd. [2024] 164 taxmann.com 376
(Calcutta). In these decisions, Hon'ble High Courts have held that the
amendment to section 14A of the Income Tax Act, whereby the
aforesaid explanation was inserted, is prospective in nature, and not
retrospective. Respectfully following the aforesaid decisions of
Hon'ble High Courts, it is held that explanation to section 14A of the
Act, inserted by amendment brought about by Finance Act, 2022, with
effect from 01/04/2022, is prospective in nature and has no
application to the assessment year 2016-17 to which this appeal
pertains. Accordingly, it is held that the assessee is not hit by the
aforesaid explanation to section 14A of the Act in so far as
assessment year 2016-17 is concerned. Further, in respectful
consideration of precedents mentioned in foregoing paragraphs
(D.1.1) and (D.1.1.1) of this order; it is held that no disallowance is
attracted u/s 14A of IT Act in assessment year 2016-17. In view of
I.T.A. No.227/Lkw/2020, 229/Lkw/20,
31
587/Lkw/19, 485/Lkw/19, 588/Lkw/19
the foregoing, we decline to interfere with the order of learned CIT(A)
on this issue.
The Income Tax Act, 1961
Cheminvest Limited vs Commissioner Of Income Tax-Vi on 2 September, 2015
I.T.A. No.227/Lkw/2020, 229/Lkw/20,
19
587/Lkw/19, 485/Lkw/19, 588/Lkw/19
I.T.A. No.227/Lkw/2020, 229/Lkw/20,
20
587/Lkw/19, 485/Lkw/19, 588/Lkw/19
I.T.A. No.227/Lkw/2020, 229/Lkw/20,
21
587/Lkw/19, 485/Lkw/19, 588/Lkw/19
I.T.A. No.227/Lkw/2020, 229/Lkw/20,
22
587/Lkw/19, 485/Lkw/19, 588/Lkw/19
I.T.A. No.227/Lkw/2020, 229/Lkw/20,
23
587/Lkw/19, 485/Lkw/19, 588/Lkw/19
I.T.A. No.227/Lkw/2020, 229/Lkw/20,
24
587/Lkw/19, 485/Lkw/19, 588/Lkw/19
I.T.A. No.227/Lkw/2020, 229/Lkw/20,
25
587/Lkw/19, 485/Lkw/19, 588/Lkw/19
I.T.A. No.227/Lkw/2020, 229/Lkw/20,
26
587/Lkw/19, 485/Lkw/19, 588/Lkw/19
I.T.A. No.227/Lkw/2020, 229/Lkw/20,
27
587/Lkw/19, 485/Lkw/19, 588/Lkw/19
I.T.A. No.227/Lkw/2020, 229/Lkw/20,
28
587/Lkw/19, 485/Lkw/19, 588/Lkw/19
(D.1.1) There is no dispute on the fact that the assessee's exempt
income, not included in taxable income of the assessee, during the
year was nil. It was held by Hon'ble Delhi High Court in the case of
Cheminvest Ltd. vs. CIT [2015] 61 taxmann.com 118 (Delhi) that
disallowance u/s 14A of the Act is not attracted when exempt income
during the year is nil. In this case, Hon'ble Delhi High Court held as
under:
Commissioner Of Income Tax -I vs Corrtech Energy Pvt ... on 24 March, 2014
Same view has also been
taken by Hon'ble Gujarat High Court in the case of CIT vs. Corrtech Energy
Pvt. Ltd. [2014] 223 taxmann.com 130 (Guj). In a number of other orders
passed by Hon'ble High Courts, the view has been taken that no
disallowance can be made u/s 14A of the Act if no exempt income was
earned by the assessee.
The Commissioner Of Income Tax(Cntl), ... vs M/S Hero Cycles Pvt. Ltd. Ludhiana on 28 August, 1997
Hon'ble Punjab &
Haryana High Court in the case reported at CIT vs. Hero Cycles Limited
[2010] 323 ITR 518 and in CIT vs. Winsome Textile Industries Ltd. [2009]
319 ITR 204 has also taken similar view holding that section 14A cannot be
invoked when no exempt income was earned.
Commissioner Of Income Tax-Iv vs Holcim India P. Ltd. on 5 September, 2014
It will
be helpful to read the following portion of the order of Hon'ble Delhi High
Court in the case of CIT vs. Holcim India P. Ltd. (supra):