TMI Blog2021 (11) TMI 629X X X X Extracts X X X X X X X X Extracts X X X X ..... f assessee. - ITA Nos. 1179/Del/2018, 1183/Del/2018 and 1184/Del/2018 - - - Dated:- 18-10-2021 - Suchitra Kamble , Member ( J ) And Dr. B. R. R. Kumar , Member ( A ) For the Appellant : Bipin Ram , AR and S. S. Nagar , Adv. For the Respondents : Javed Akhtar , CIT DR ORDER Per Dr. B. R. R. Kumar , Accountant Member The present appeals have been filed by the assessee against the orders of the ld. PCIT, New Delhi dated 30.10.2017. 2. Since, the issues involved in all these appeals are identical, which were heard together. 3. In ITA No. 1179/Del/2018, following grounds have been raised by the assessee: 1(a) That on the facts and in the circumstances of the case the regular assessment order dated 27-12-2016 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to direct the Ld. AO to make suitable checks and verification in the matter. 3.0 That on the facts and in the circumstances of the case the order has been passed in utter disregard to the principal of nature justice and no opportunity was provided to explain the case. 4. The order passed u/s. 263 of the Income Tax Act, 1961 by the ld. PCIT is reproduced as under: Income tax record of M/s. Divyarth Leasing Finance Pvt. Ltd. reveal, for the assessment, year 2009-10, the A.O., Central Circle-27, New Delhi passed an order u/s. 153A read with section 143(3) of the Income-tax Act, 1961 on 27.12.2016, on the returned income of ₹ 31,57,623/-. 2. It is established that the assessee company invested ₹ 21,08,65,690/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Board of Direct Taxes, in exercise of its power under section 119 of the Act hereby clarifies that Rule 8D read with section 14A of the Act provides for disallowance of the expenditure even where tax payer in a particular year has not earned any exempt income. Further Section 263 of the I.T. Act clearly states that:- The [Principal Commissioner or] Commissioner.......... considers that any order passed therein by the [Assessing Officer] Officer is erroneous in so far as it is prejudicial to the interest of the revenue, he may, after giving the assessee an opportunity of being heard and after making or causing to made such inquiry as he deems necessary, pass such order thereon as the circumstances of the case justify, including an ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 02 w.e.f. 11.05.2001. It also provides that the A.O. cannot reopen the assessment u/s. 147 for any assessment year prior to A.Y. 2001-02 for this purpose or pass any rectification order u/s. 154 for prior years to disallow any such expenditure. 8. It has been a matter of several judicial pronouncements as to whether the expenses should be disallowed in case the assessee has not earned any exempt income during the relevant assessment year or not? 9. The Hon'ble Delhi High Court in the case of M/s. Holcim India P. Ltd. vs. CIT-IV (ITA No. 486/2014 ITA No. 299/2014) dated September 5, 2014 held that no disallowance can be made u/s. 14A if there is no exempt income in the relevant year. 10. Reference is also invited to the decisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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