TMI Blog2022 (9) TMI 1238X X X X Extracts X X X X X X X X Extracts X X X X ..... ainst the judgement of Hon ble Delhi High Court [ 2018 (2) TMI 1861 - DELHI HIGH COURT] by relying upon the decision in the case of CIT vs Essar Teleholdings Limited [ 2018 (2) TMI 115 - SUPREME COURT] - The Hon ble Delhi High Court had rules that, in absence of any exempt income, disallowance u/s 14A of the Act of any amount was not permissible. In arriving at this conclusion, the Hon ble Delhi High Court had relied upon its earlier decision in the case of Cheminvest Ltd. [ 2015 (9) TMI 238 - DELHI HIGH COURT] . The above proposition of law has been well accepted by various courts and as such we do not want to interfere in the order passed by the CIT(a) and following the decision of Co-ordinate Bench in the case of ACIT vs K. Raheja Corp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e without considering the CBDT s Circular No. 03/2018 dated 11.07.2018 and correct computation under Rule 8D. iii. That on the facts and in the circumstances of the case, the ld. CIT(A) erred by not considering the section 14 and section 14A as interpreted by ITAT (Amritsar) in the case of Lally Motors Pvt. Ltd. vs PCIT and Hon ble Supreme Court in the case of CIT vs Rajendra Prasad Moody held in favour of revenue. iv. That the department craves leave to add to and/or alter, amend modify or rescind the grounds hereinabove before or hearing of this appeal. 2. Brief facts of the case are that the assessee is a company which derived income from management consultancy and filed its return of income for A.Y. 2016-17 on 17.10. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he CBDT s Circular No. 5/2014 dated 11.02.2014 which states that disallowance u/s 14A of the Act is required to be made. Irrespective of whether the investment yielded exempted income or not and therefore, the order of AO be restored. 6. Per contra, the ld. AR of the assessee relied on the order of ld. CIT(A). He contended that PCIT vs IL FS Energy Development Pvt. Ltd. (399 ITR 483) after considering the Board Circular No. 5/2014 has upheld the assessee s contention that in absence of any exempt income earned in the year in question the disallowance u/s 14A of the Act is unwarranted. 7. We have heard both the parties and we deem it fit to deal with the CBDT s Circular No. 5/2014 relied upon the revenue and it is not well settled in l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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