TMI Blog2020 (1) TMI 1161X X X X Extracts X X X X X X X X Extracts X X X X ..... said expression envisages that there should be an actual receipt of income which is not includible in the total income during the relevant previous year for the purpose of disallowing any expenditure incurred in relation to the said income. It was clarified that Section 14A will not apply if no exempt income is received or receivable during the relevant previous year. This view has been followed in several decisions by this Court. No substantial question of law arises - INCOME TAX APPEAL NO. 1124 OF 2017 - - - Dated:- 27-1-2020 - UJJAL BHUYAN, MILIND N. JADHAV, JJ. Mr. A.R.Malhotra for the Appellant. Mr. Mihir C. Naniwadekar a/w. Mr. Ruturaj Gurjar for Respondent. P.C. :- 1. Heard Mr.A.R.Malhotra, learned standin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er consideration declared total loss of Rs.(-) 10,16,33,795/-. The case was selected for scrutiny and thereafter subjected to scrutiny assessment. Assessing Officer noted that assessee had made investment of ₹ 7.90 Crores in shares of Kohinor CTNL Infrastructure Co. Ltd. which was held to be strategic investment for which assessee would receive future benefits. Notwithstanding the fact that the assessee had earned no exempt income for the relevant previous year, Assessing Officer made disallowance to the extent of ₹ 6,95,98,750/- under Section 14A of the Act. 5. Aggrieved by the aforesaid, assessee preferred appeal before the Commissioner of Income Tax (Appeals)-12, Mumbai. In the appeal proceedings the first appellate aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uently, vide order dated 18.10.2016 Tribunal dismissed the appeal of the revenue. 7. Submissions made by learned counsel for the parties have been considered. 8. Section 14A of the Act deals with expenditure incurred in relation to income not includible in total income. As per sub- Section (1) of Section 14A, for the purpose of computing the total income, no deduction shall be allowed in respect of expenditure incurred by the assessee in relation to income which does not form part of the total income. In Cheminvest Ltd. (supra) Delhi High Court examined the expression does not form part of the total income as appearing in sub-Section (1) of Section 14A of the Act. Delhi High Court held that the said expression envisages that there s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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