TMI Blog2020 (2) TMI 1233X X X X Extracts X X X X X X X X Extracts X X X X ..... ossibly related is para No. 10 of the circular which is quoted herein below 10. Adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect : (a) Where the Constitutional validity of the provisions of an Act or Rule is under challenge, or (b) Where Board's order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or (c) Where Revenue Audit objection in the case has been accepted by the Department, or (d) Where the addition relates to undisclosed foreign assets/band account. The only point to which this argument can be relatable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing the merits ignoring the legislative intent expressed in CBDT's Circular No. 5/2014 dated 11.02.2014, which explicitly states that expenses relatable to earning of exempt income have to be considered for disallowances irrespective of the fact whether any such income has been earned during the F.Y. or not as confirmed by Apex Court in Maxopp Investment Ltd. Vs. CIT, 91 Taxman.com 154 (SC) ? (iii) Whether on the facts and in the circumstances of the case, the Hon'ble ITAT is justified in dismissing the Miscellaneous application of the Revenue, without appreciating the fact that applicability of section 14A or Rule 8D does not depend on earning of income as held by Supreme Court in the case of CIT vs. Rajender Prasad Moody ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the merits of the case because order of Ld. CIT Appeal is perverse in holding that it is now 'res integra' that disallowances u/s 14A cannot exceed exempt income, when Supreme Court has upheld the principles of apportionment and department is in SLP on the same issue in the cases of Moderate Leasing and Capital Services Pvt. Ltd in ITA No. 102 of 2018, A.Y. 2009-10 and Matrix Cellular Services (P) Ltd. in ITA No. 484 of 20174 and Nilgiri Infrastructure Development Ltd. in ITA No. 135 of 2016 and Instant Holding Ltd. in ITA No. 2168 of 2011 ? (viii) Whether on the facts and in the circumstances of the case and in law, Hon'ble ITAT has erred in dismissing the Miscellaneous application and not deciding the merits of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s been accepted by the Department, or (d) Where the addition relates to undisclosed foreign assets/band account. 3. The only point to which this argument can be relatable is Clause 10 (b). We asked the learned counsel where any Notification, Order, Instruction or Circular has been held to be illegal or ultra vires. Her argument is that though no Order, Notification, Instructions or Circular has been held to be legal or ultra vires but effect of the said Circular has not been correctly understood. In our considered view, that is beyond the exception clause count down by the circular. 4. Accordingly, no substantial question of law proposed arises. Consequently, the appeal stands dismissed. 5. Since the main case has been dismi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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