TMI Blog2023 (9) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... n that the amendment shall apply from 01.04.2022. Furthermore, the said amendment has also been examined in two decisions relied upon by Ld. AR, M/S. ERA INFRASTRUCTURE (INDIA) LTD. [ 2022 (7) TMI 1093 - DELHI HIGH COURT] and LODHA DEVELOPERS LTD. (SUCCESSOR TO PALAVA DWELLERS PVT. LTD) [ 2022 (9) TMI 152 - ITAT MUMBAI] and have held that the amendment is prospective. We are inclined to accept the pleadings made by Ld. AR for assessee. Consequently, we hold that the disallowance made by AO u/s 14 is not valid. The same is hereby deleted. The assessee succeeds in this appeal. - Shri Vijay Pal Rao, Judicial Member And Shri B.M. Biyani, Accountant Member For the Assessee : Shri Soumya Bumb, AR For the Revenue : Ms. Simran Bhull ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no disallowance can be made in the hands of the assessee when the assessee has not claimed any exempt income. Ld. CIT(A) after considering the written submissions of the assessee has granted relief to the assessee by following judgement of Hon ble Delhi High Court in the case of Cheminvest Ltd. vs. CIT (supra) where Their Lordship categorically held that section 14A will not apply if no exempt income is received or receivable during the relevant previous year by the assessee. In view of above we are unable to see any valid reason to interfere with the findings arrived at by the Ld. CIT(A), therefore we uphold the same. The sole contention of the revenue is that the Hon ble Supreme Court has issued notices in the cases of PCIT vs. Adani Wilm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 14A vide Finance Act, 2022, whereby a non-obstante clause has been inserted in the opening portion of section 14A and also the following Explanation has been inserted at the end of section: Explanation For the removal of doubts, it is hereby clarified that notwithstanding anything to the contrary contained in this Act, the provisions of this section shall apply and shall be deemed to have always applied in a case where the income, not forming part of the total income under this act, has knot accrued or arisen or has not been received during the previous year relevant to an assessment year and the expenditure has been incurred during the said previous year in relation to such income not forming part of the total income. 6. Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 022-23 and subsequent assessment years. Then, the Ld.AR relied upon two decisions, (i) PCIT vs. Era Infrastructure (India) Ltd., (2022) 141 Taxman.com 289 (Delhi HC) and (ii) DCIT vs. Lodha Developers Ltd. (2022) 143 taxmann.com 442 (Mumbai ITAT ), wherein it has been held that the aforesaid amendment is applicable prospectively from 01.04.2022. Ld.AR also filed copies of these decisions after conclusion of hearing as per liberty given to him during hearing. 7. With these submissions, Ld. AR prayed that in the present case of assessee the disallowance made by AO and confirmed by CIT(A) is not valid, hence the same must be deleted. 8. Per contra, Ld. DR for revenue relied upon the orders of lower authorities and contended that once ..... X X X X Extracts X X X X X X X X Extracts X X X X
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