TMI Blog2017 (3) TMI 532X X X X Extracts X X X X X X X X Extracts X X X X ..... llowance u/s 14A read with Rule 8D (2) (iii) shall be required to be made. It is further noted that Ld. counsel has also cited various judgment s as reproduced in earlier part of order . No contrary judgments have been cited by the Ld. D.R. on this issue. Thus, taking facts and circumstances of the case and well settled legal position into account as has been submitted by the Ld. Counsel of the assessee, we find that no interference is called for in the order of the Ld. CIT(A). Thus, his orders are upheld for all the 3 years. - Decided against revenue - I.T.A. Nos.3703,3704 &3705/Mum/2015 - - - Dated:- 3-3-2017 - SHRI C.N. PRASAD, JUDICIAL MEMBER AND SHRI ASHWANI TANEJA, ACCOUNTANT MEMBER For The Appellant : Ms. Anupama Singla( D. R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,000/-. The A.O. is directed to recompute the income accordingly. 3. Likewise, for assessment year 2010-11, It was held by the Ld. CIT(A) that no exempt income has been received by the asses see, therefore entire disallowance made by the A.O. was deleted by observing as under.: After careful perusal of the assessment order and written submissions filed by the A/R of the appellant it has been observed that the A.0 has disallowed Rs .2,83,73,000/ - u/ s -14A while applying the provisions of Rule 8D of the Income Tax Rules, 1962 against which the appellant has filed an appeal because it had disallowed ₹ 25,000/- while making computation of income. The A.O. while making disallowance u/s-14A has given the finding in the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isallowance u/s-14A can be made. The jurisdictional bench of the Hon'ble ITAT in case of Avshesh Mercantile (P) Ltd. has followed the above said judgment of the jurisdictional high court. The Allahabad/Gujarat High Court has also decided the identical issue on identical lines in the case of Shivam Motor (P) Ltd. and Corrtech Energy Pvt. Ltd. The Hon'ble Gujarat High Court has followed the judgment of Winsome Textile Industries delivered by Hon'ble Punjab Haryana High Court in the case of Corrtech Energy Pvt. Ltd. in which it has been held that where the appellant has not claimed any exempt income, no disal lowance u/ s -14A can be made. The Honlble Punjab Haryana High Court has again decided this issue in the case of Lakhani ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Subramanian, ITO v. Siemens India Ltd. [1985] 156 ITR 11. The question that arose for consideration in this case is whether the Income-tax Officer is bound by the decision of a single Judge or a Division Bench of the Court within whose jurisdiction he is operating even if an appeal has been preferred against such decision and is pending. The following observations of the Bombay High Court may be extracted: So far as the legal position is concerned, the ITO would be bound by a decision of the Supreme Court as also by a decision of the High Court of the State within whose jurisdiction he is (functioning, irrespective of the pendency of any appeal or special leave application against that judgment (Emphasis supplied). Respectfu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act No.5592/Mum/2012) 4-8 3 Nimbus Communications Ltd. v. ACIT (I.T.No.1424/Mum/2014 9-24 4 ACIT V. M/S Claridges Hotels Pvt. Ltd (I.T.Act No 2733/Del/2012) 25-55 No disallowance is to be made when capital gains are chargeable to tax 5 CIT v. Holcim India P. Ltd. (272 CTR 282) (Del. High Court) 56-62 6 Sundaram Asset Management Co. Ltd. v. DCIT (145 ITD 17) (Chennai) 63-73 No disallowance u/s. 14A when no dividend income i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any such facts and has not mentioned any such things to indicate any type of receipt of exempt income by the assessee during A.Y. 2010-11 2011-12. Therefore, order of the Ld. CIT(A) is to be upheld. It was also submitted that nothing has been brought on record by the Ld. D.R. to show that the case of the assessee is not squarely covered in its favour by the aforesaid judgments as has been relied upon by Ld. CIT(A) and has been cited by the learned counsel before us. 9. We have gone through the orders passed by the A.O. as well as by the Ld. CIT(A). It is noted that Ld. CIT(A) recorded categorical finding in his order that no exempt income has been received by the assessee in A.Y. 2010-11 2011-12. It has been mentioned by Ld. CIT(A) t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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