TMI Blog2022 (9) TMI 826X X X X Extracts X X X X X X X X Extracts X X X X ..... of Return of Income. Therefore, the assessee succeeds and we allow the appeal of the assessee. Disallowance u/s 14A - Expenditure incurred on exempt income - HELD THAT:- This is settled legal position that disallowance cannot exceed the exempt income. Accordingly we set aside the order of ld. CIT(A) on this issue and direct the AO to restrict the disallowance to exempt income. Disallowance u/s 14A to book profit u/s 115JB - HELD THAT:- After hearing the rival contention and perusing the applicable provisions of law with the ratio laid down by various judicial forums, we set aside the order of ld. CIT(A) and direct the AO not to make any addition to book profit qua the disallowance u/s 14A. The ground is allowed. - I.T.A. No. 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 186/Kol/2021 dated 16.07.2021 for AY 2019-20. iii. On the facts and in the circumstances of the case as well as in law the NFAC erred in not deleting the addition made u/s 14A without recording mandatory satisfaction u/s 14(2) that the disallowance made by the assessee is not correct. iv. On the facts and in the circumstances of the case the NFAC erred in directing the AO to restrict the disallowance to the extent of expenses incurred to earn exempt income as against the judgment of Hon ble Calcutta High Court in case of REI Agro Ltd. that disallowance u/s 14A was required to be limited to the investments which yielded exempt income. v. Without prejudice to Ground No. 3 and 4, on the facts and in the circumstances of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an.com 396(Cal) which has been further followed by the Coordinate Calcutta Bench of this Tribunal in the case of Harendra Nath Biswas vs. DCIT in ITA No.186/Kol/2021 by the order dated 16.07.2021. The ld. DR fairly submitted there is no contrary to the case law cited above. 5. We find that the issue is covered in favour of the assessee as the assessment year involved is AY 2014-15 and the Explanation-5 inserted by Finance Act, 2021 to section 43B w.e.f. 01.04.2021 is not applicable to the assessment year under consideration. The relevant portion of the Co-ordinate Bench decision of the Tribunal in the case of Harendra Nath Biswas vs. DCIT (supra) for the sake of reference is reproduced as under: 2. The sole grounds of appeal raised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relying on the Explanation-5 below section 43B which was brought in by Finance Act, 2021 to deny the claim of assessee. Therefore, the assessee is before us by preferring this appeal. 4. We have heard both the parties and perused the record. First of all we do not countenance this action of the Ld. CIT(A) for the simple reason that the Explanation 5 was inserted by the Finance Act, 2021, with effect from 01.04.2021 and relevant assessment year before us is AY 2019-20. Therefore the law laid down by the Jurisdictional Hon ble High Court will apply and since this Explanation-5 has not been made retrospectively. So we are inclined to follow the same and we reproduce the order of Hon ble Calcutta High Court in the case of Vijayshree Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce Act, 2003, was curative in nature and is required to be applied retrospectively with effect from 1st April, 1988. Such being the position, the deletion of the amount paid by the Employees Contribution beyond due date was deductible by invoking the aforesaid amended provisions of Section 43(B) of the Act. We, therefore, find that no substantial question of law is involved in this appeal and consequently, we dismiss this appeal. Urgent xerox certified copy of this order, if applied for, be supplied to the parties subject to compliance with all requisite formalities. In the light of the aforesaid discussion we do not accept the Ld. CIT(A) s stand denying the claim of assessee since assessee delayed the employees c ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
