2017 (3) TMI 1676 - HC - Income Tax

Disallowance u/s 14A made in the course of the search - ITAT cancelled the disallowance in excess of Rs. 69 lacs was unwarranted because there was no tax imposition income in the given year relying on decision in Cheminvest Ltd. vs Commissioner of Income Tax 2015 (9) TMI 238 - DELHI HIGH COURT) - Held that - Since the ITAT followed the ruling of this Court and there was no tax imposition income there could not have been any disallowance under Section 14A of the Act. Its decision therefore is sound and does not call for any interference. - Decided against revenue

Summary

The Delhi High Court dismissed the appeal by the Revenue against the ITAT order canceling the disallowance under Section 14A of the Income Tax Act for AY 2010-11. The ITAT decision was based on the absence of tax imposition income, following a previous court ruling in Cheminvest Ltd. vs Commissioner of Income Tax. The Court found no grounds for interference as no substantial question of law arose.