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TMI Blog2020 (1) TMI 1161X X X X Extracts X X X X X X X X Extracts X X X X ..... P.C. :- 1. Heard Mr.A.R.Malhotra, learned standing counsel revenue for the appellant and Mr. Mihir C. Naniwadekar, learned counsel for the respondent - assessee. 2. This appeal has been fled by the revenue under Section 260A of the Income Tax Act, 1961 ("the Act" for short) against the order dated 18.10.2016 passed by the Income Tax Appellate Tribunal "A" Bench, Mumbai ("Tribunal" for short) i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T(A) to restrict the disallowance to Rs. 1.16 crore without appreciating the fact that by doing this, Hon'ble ITAT has allowed the application of Rule 8D(2) (ii) of the I.T. Rules, 1962 in the case of the assessee even when it has not earned any exempt income ? 4. Respondent in its return of income for the assessment year under consideration declared total loss of Rs.(-) 10,16,33,795/-. The case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... investments that would give rise to exempt income and, therefore, Section 14A of the Act was applicable. Accordingly, vide order dated 08.05.2013, first appellate authority affirmed the action of the Assessing Officer in invoking Section 14A of the Act but reduced the quantum of disallowance to Rs. 1,16,03,269/- for the grounds and reasons mentioned in the appellate order. 6. Aggrieved by the red ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y in the view that in case there is no exempt income claimed by the assessee in the return of income, no disallowance can be made by the revenue. Consequently, 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 inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the relevant previous year. 9. This view has been followed in several decisions by this Court. In fact in Income Tax Appeal No. 259 of 2017, Principal Commissioner of Income Tax, Mumbai v/s. MAN Infraprojects Ltd., decided on 09.04.2019, this Court followed the decision of the Delhi High Court in Cheminvest Ltd. (supra). It was further noted in MAN Infraprojects Ltd. that the decision of the D ..... X X X X Extracts X X X X X X X X Extracts X X X X
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