TMI Blog2015 (2) TMI 1234X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. In this appeal, though the assessee has raised as many as 12 grounds of appeal, we find that ground Nos.1, 11 and 12 are general in nature and need no adjudication. 3. Ground Nos.2 to 6 relate to the assessee s claim of deduction u/s 80-IB(10) of the Income-tax Act, 1961 [hereinafter referred to as 'the Act' for short] while ground Nos.7 to 9 are against the disallowance made by the Assessing Officer (AO) u/s 14A of the Act. 3.1 Brief facts of the case are that the assessee which is carrying on the business of developing and building of residential flats and colonies, filed its return of income declaring total income of ₹ 1,95,84,996/- after claiming deduction u/s 80-IB(10) of the Act. The return of income was fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he order of the CIT(A). Therefore, the grounds No.2 to 6 are rejected. 4. As regards ground Nos.7 to 9 are concerned, it is the case of the assessee that it has not made any claim of exempt income in its return of income and therefore no disallowance u/s 14A can be made. The learned counsel for the assessee submitted that the AO had made the disallowance u/s 14A read with rule 8D even though there was no exempt income during the relevant financial year. The CIT(A) had confirmed the order of the AO by holding that there is increase in the investment of the assessee during the relevant assessment year resulting in increase of interest on total loans and thus interest bearing funds were utilized in investments earning exempt income. Therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that in the absence of exempt income earned by the assessee, the provisions of sec.14A cannot be invoked. The relevant portion of the Tribunal order is reproduced hereunder for the sake of convenience. 17. The learned counsel for the assessee relied on the following judicial pronouncements of the Hon ble High Courts to the proposition that if there is no exempt income during the previous year, then the provisions of section 14A of the Act cannot be invoked: CIT v. Winsom Textile Industries Ltd.(2009) 319 ITR 204 (P H); CIT v Corrtech Energy P. Ltd. (Tax Appeal No.239 of 2014, dt.24.03.2014)(Guj); JCIT v. Shivam Motors (P) Ltd. (ITA.17/Lkw/2012, dated 12.11.2013)(ITATLucknow); and CIT v. M/s Shivam Motors (P)Ltd. (I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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