TMI Blog2023 (8) TMI 882X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the year. We find that while dealing with the issue of whether the aforesaid amendment by the Finance Act, 2022 is prospective or retrospective in operation, M/s Era infrastructure (India) Ltd [ 2022 (7) TMI 1093 - DELHI HIGH COURT] held that the amendment by Finance Act, 2022 in section 14A is prospective and will apply in relation to the AY 2022 23 and subsequent assessment years. Thus, even in view of the aforesaid amendment also, the disallowance u/s 14A r.w.r. 8D is not permissible in the present case. Disallowance computed u/s 14A read with Rule 8D is directed to be deleted - Decided in favour of assessee. - Shri G.S. Pannu, President, And Shri Sandeep Singh Karhail, Judicial Member For the Assessee : Shri M.A. Gohel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2.1 On the facts and in circumstance of the case and in law, the learned CIT(A) erred in disallowing the on Intellectual Property Rights amounting to Rs. 1,30,924/- depreciation as claimed by the appellant under Section 32 of the Act. 2.2 The learned CIT(Appeals) failed to appreciate the submissions made and explanation offered by the appellant under Section 32 of the Act. The appellant prays that the learned Assessing Officer be directed to allow the deduction for Depreciation as the same is allowable. The appellant craves the leave to add to, alter or amplify the above grounds of appeal as and when the need arises. 3. During the hearing, the learned Authorised Representative wishes not to press ground no.2 raised in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le 8D. Accordingly, the assessee was asked to explain as to why disallowance under section 14A read with Rule 8D should not be made. In response thereto, the assessee, inter-alia, submitted that no dividend income was received by the assessee and therefore no disallowance is required to be made under section 14A read with Rule 8D. The Assessing Officer vide order dated 16/12/2019 passed under section 143(3) of the Act did not agree with the submissions of the assessee and computed the disallowance of Rs. 18,45,867 under section 14A read with Rule 8D. The learned CIT(A), vide impugned order, dismissed the ground raised by the assessee on this issue and upheld the disallowance made by the AO under section 14A read with Rule 8D. 6. From the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2022 is prospective or retrospective in operation, Hon ble Delhi High Court in PCIT vs M/s Era infrastructure (India) Ltd, [2022] 288 Taxman 384 (Delhi) held that the amendment by Finance Act, 2022 in section 14A is prospective and will apply in relation to the assessment year 2022 23 and subsequent assessment years. Thus, even in view of the aforesaid amendment also, the disallowance under section 14A read with Rule 8D is not permissible in the present case. 8. Thus, in view of the above, the disallowance computed under section 14A read with Rule 8D is directed to be deleted. Accordingly, ground no.1 raised in assessee s appeal is allowed. 9. In the result, the appeal by the assessee is partly allowed. Order pronounced in the open ..... X X X X Extracts X X X X X X X X Extracts X X X X
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