TMI Blog2020 (2) TMI 955X X X X Extracts X X X X X X X X Extracts X X X X ..... rn of income, then the provision of Section 14A is not applicable. The concurring findings of fact recorded by the two authorities is that in the year under consideration, the assessee company had not earned any exempt income and had not claimed any such exempt income in the return of income. - Decided against revenue. - R/TAX APPEAL NO. 66 of 2020 - - - Dated:- 17-2-2020 - HONOURABLE MR.JUSTICE J.B.PARDIWALA And HONOURABLE MR. JUSTICE BHARGAV D. KARIA MRS MAUNA M BHATT FOR THE APPELLANT ORDER ( PER : HONOURABLE MR.JUSTICE J. B. PARDIWALA ) 1 This Tax Appeal under Section 260A of the Income Tax Act, 1961 [for short, 'the Act, 1961'] is at the instance of the Revenue and is directed against the order passed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be made by invoking Section 14A of the Act, 1961 though no income had been earned by the assessee claimed as exempt during the year under consideration. 4 In such circumstances referred to above, the Assessing Officer computed disallowance under Section 14A read with Rule 8D of the Income Tax Rules to the amount of ₹ 4,72,00,565/and added to the total income of the assessee. 5 The assessee being dissatisfied with the assessment order went in appeal before the CIT(A). The CIT(A) deleted the addition relying upon the decision of this Court in the case of CIT vs. Corrtech Energy P. Ltd [2014] 45 taxmann.com 116. 6 The Revenue being dissatisfied with the order passed by the CIT(A) went in appeal before the Tribunal. 7 The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T have been elaborated In the decision of the Ld. CIT(A) V de which similar issue on identical facts have been decided in favour of the assessee. We have also perused the judicial pronouncement in the case of CIT v Corrtech Energy (p) Ltd (2014) 45 taxmann.com. 116 of Hon ble High Court of Gujarat wherein it is held that in a case assessee did not make any claim for exemption of any income from payment of taxes, in that case disallowance u/s 14A of the act could not be made. It is crystal clear that the jurisdictional High Court has decided that to attract the provision of section 14A it is required that assessee should have earned an exempt income, if the assessee has not earned an exempt income and not claimed so in the return of income t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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