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2019 (11) TMI 1242 - AT - Income TaxCondonation of delay - delay of 133 days beyond time prescribed u/s 253(3) - Change of officer who was looking after taxation matter and due to this change over of relevant officer incharge , it could not file its appeal in time with tribunal as there was not proper handover by outgoing officer looking after taxation matter to a new officer incharge of taxation matter - HELD THAT:- it is now a well settled position of law that if technicalities are pitted against substantial justice, the Court will lean towards substantial justice and in our considered view the assessee has shown sufficient cause in explaining delay of 133 days in filing of this appeal with tribunal beyond time prescribed u/s 253(3) of the 1961 Act and hence keeping in view, interest of substantial justice, we are inclined to condone this delay of 133 days in filing of this appeal late by assessee beyond time prescribed u/s 253(3) of the 1961 Act, by invoking our powers u/s 253(5) of the 1961 Act and admit this appeal to be adjudicated on merits in accordance with law. It is pertinent to mention that no averments are made by Revenue nor there is any material on record to show that there is an malafide on part of assessee in filing this appeal late with tribunal Disallowance u/s 14A - no exempt income is earned by taxpayer - HELD THAT:- In the case of Chettinad Logistics Private Limited [2017 (4) TMI 298 - MADRAS HIGH COURT] has held that no disallowance of expenditure u/s 14A can be made when no exempt income is earned by taxpayer. The SLP filed by Revenue against decision of Hon’ble Madras High Court decision in case of Chettinad Logsitics Private Limited(supra) has been dismissed by Hon’ble Supreme Court [2018 (7) TMI 567 - SC ORDER] When no exempt income is earned by taxpayer, no disallowances of expenditure u/s 14A are warranted. Thus no disallowance of expenditure by invoking provisions of Section 14A of the 1961 Act is warranted as assessee has not earned any exempt income during the year under consideration and hence we hereby order deletion of disallowances of expenditure made by AO by invoking provisions of Section 14A of the 1961 Act read with Rule 8D of the 1962 Rules, which additions were later confirmed by Ld.CIT(A). MAT Computation - Our above decisions shall also apply mutatis mutandis while making disallowance of expenditure incurred for earning of exempt income while computing book profits u/s 115JB of the 1961 Act. The decision in the case of ACIT v. Vireet Investment Private Limited [2017 (6) TMI 1124 - ITAT DELHI] is relevant wherein it is held that computation under clause (f) of Explanation 1 to Section 115JB(2) is to be made without resorting to the computation as contemplated u/s 14A read with Rule 8D of the 1962 Rules.
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