TMI Blog2016 (7) TMI 925X X X X Extracts X X X X X X X X Extracts X X X X ..... K S JHAVERI) 1. Revenue has challenged judgement of the Income Tax Appell - - - Dated:- 11-7-2016 - MR. K S JHAVERI AND MR. G R UDHWANI, JJ. FOR THE APPELLANT : MR SUDHIR M MEHTA, ADVOCATE FOR THE OPPONENT : MR B S SOPARKAR, CAVEATOR ORAL ORDER (PER : HONOURABLE MR.JUSTICE K S JHAVERI) 1. Revenue has challenged judgement of the Income Tax Appellate Tribunal, Ahmedabad, dated 07.12.2015 whereby the Tribunal has partly allowed the appeals of the Revenue as well as the assessee. 2. The Revenue has proposed the following substantial question of law for our consideration: Whether the ITAT has erred in fact and in law in deleting the addition of ₹ 66,63,882/- made by the A.O. u/s. 14A of the Act read wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry but consequential. 6. The Tribunal by the impugned judgement dated 07.12.2015 partly allowed appeals of both Revenue as well as that of the assessee. For coming to such conclusion, the Tribunal made following observations: 6. We have duly considered the rival contentions and gone through the record carefully. The Hon'ble Gujarat High Court has considered this issue in the case of CIT vs. Corrtech Energy P Ltd and held that if there is no exempt income claimed by the assessee, then there is no disallowance ought to be u/s. 14A of the Income Tax Act. The following observations are worth to note:- 4. Counsel for the Revenue submitted that the Assessing Officer as well as CIT(Appeals) had applied formula of rule 8D of the Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... context. In the present case, admittedly the assessee did not make any claim for exemption. In such a situation section 14A could have no application. 5. We do not find any question of law arising, Tax Appeal is therefore dismissed. The issue in dispute is squarely covered by the above decision of Hon'ble Gujarat High Court. We, therefore, allow the appeal of the assessee and delete the disallowance. As the issue dealt in the above referred decision of Co-ordinate Bench is similar to the issue in the case of assessee, wherein there is no exempt income during the year, we are of the view that learned CIT(A) was not justified in partly allowing this addition made by Assessing Officer and set aside the orders of lower authoritie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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