TMI Blog2022 (12) TMI 538X X X X Extracts X X X X X X X X Extracts X X X X ..... the findings of the ld.CIT(A). The ground raised by the Revenue are dismissed. - ITA No. 5399/Del/2019 - - - Dated:- 24-11-2022 - SHRI C. M. GARG , JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA , ACCOUNTANT MEMBER Assessee by : None Revenue by : Shri Kumar Pranav , Sr. DR ORDER PER C. M. GARG , JM : This appeal filed by the Revenue is directed against the order of the CIT(A)-33, New Delhi, relating to Assessment Year 2015-16. 2. The ground of appeal raised by the Revenue reads as under:- 1. Whether on the facts and in the circumstances of the case, the Ld. CIT(A)has erred in deleting the disallowance made u/s 14A of the Income Tax Act, 1961 in accordance with Rule 8D of the IT Rules of Rs.1,90,22,356/-. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt order may kindly be restored by setting aside the first appellate order. 5. On careful consideration of the above submissions, we observe that the ld.CIT(A) has deleted the addition by observing as follows:- 8. Decision 8.1 The Appellant has clarified that there was no exempt income earned by it during the year. To demonstrate this fact the copy of ITR has been submitted in which against the column dividend income the figure has been shown Zero . Similarly, Nil income has been shown against the column Profit on sale of investment being securities chargeable to securities transaction tax . Again the Appellant has declared Zero income against the head Income credited to Profit Loss Account (included in one) which is ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble to the dividend income has to be disallowed and cannot be treated as business expenditure. Keeping this objective behind Section14A of the Act in mind, the said provision has to be interpreted, particularly, the word in relation to the income that does not form part of total income. Considered in this hue, the principle of apportionment of expenses comes into play as that is the principle which is engrained in Section 14A of the Act. This is so held in Walfort Share and Stock Brokers P Ltd., relevant passage whereof is already reproduced above, for the sake of continuity of discussion, we would like to quote the following few lines therefrom. The next phrase is, in relation to income which does not form part of total income un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f appeal taken by the Appellant is allowed. 6. In view of above facts and circumstances, the ld.CIT(A) was right in concluding that no disallowance of expenditure could be made by the AO in the case of the assessee u/s 14A of the Act r.w.r. 8D of the Income-tax Rules, 1962 as no exempt income was earned by the assessee during the year under reference, i.e., AY 2015-16. The ld.CIT(A) has placed reliance on the judgement of the jurisdictional High Court in the case of Cheminvest Ltd. (supra) which is binding on all the tax authorities including the Tribunal. Therefore, we are unable to see any ambiguity, perversity or any other valid reasons to interfere with the findings of the ld.CIT(A). The ground raised by the Revenue are dismissed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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