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TMI Blog2021 (3) TMI 1422X X X X Extracts X X X X X X X X Extracts X X X X ..... nstruction of houses, buildings and other related activities. The assessee has filed its return of income for the Assessment Year 2014-15. During the assessment proceedings, the Assessing Officer made disallowance under Section 14A of the Income Tax Act. The assessee being aggrieved preferred an appeal before the Commissioner, Income tax (Appeals) and the Appellate Authority has allowed the appeal and appeals were preferred by the revenue before the Tribunal and the Tribunal by order dated 31.08.2018 has allowed the appeals in respect of the assessment years 2010-11, 2011-12 and 2014-15. 3. This Court on 3.07.2019 has framed the following substantial question of law: "Whether on the facts and in the circumstances of the case, the Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture allowable is relatable to earning of income and therefore, the expenses which are relatable to earning of exempt income have to be considered for disallowance, irrespective of the fact whether such income has been earned during the financial year or not?" 2. Facts leading to filing of this appeal briefly stated are that the assessee filed its return of income for the Assessment Year 2009-10 declaring a total income of Rs. 4,10,17,850/- on 14.10.2010. The aforesaid return was processed under Section 143(1) of the Act. The case of the assessee was selected for scrutiny and during the course of assessment proceedings, the assessee filed a letter dated 15.11.2011 in which the assessee recomputed its taxable income at Rs. 4,79,57,900/- by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee filed cross-appeal before the Tribunal against the order of the Commissioner of Income Tax (Appeals) to the extent it was passed against it in ITA No. 1417/Bang/2012. The Tribunal, vide its common order dated 23.06.2015, dismissed the appeal preferred by the revenue and partly allowed the appeal preferred by the assessee. Being aggrieved by the aforesaid order of the Tribunal, the revenue has filed this appeal. 4. Learned counsel for the revenue, while inviting the attention of this Court to the order passed by the Assessing Officer, pointed out that the reasoning / satisfaction has been recorded by the Assessing Officer for disallowing the claim made by the assessee under Section 14A of the Act. It is further submitted that the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee had taken a specific stand before the Assessing Officer in the assessment proceedings itself that the assessee has not earned any income which is exempted from tax. The relevant extract of paragraph 19 of the order passed by the Tribunal is reproduced below for the facility of reference: "It is not disputed that there was no dividend or exempt income claimed by the assessee during the relevant previous year." 7. Thus, in the fact situation of the case, it was an admitted position that no dividend or exempt income was claimed by the assessee during the relevant previous year. It is well settled in law that if no exempt income has accrued to the assessee, the provisions of Section 14A do not apply to the fact situation of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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