Computation of book profit & MAT credit u/s 115JB of the Income Tax Act

IN THE INCOME TAX APPELLATE TRIBUNAL
HYDERABAD ‘A’ BENCH : Hyderabad
(Through Video Conference)
Before Smt. P. MADHAVI DEVI, Judicial Member
and
Shri L.P. SAHU, Accountant Member
ITA No. 2291/Hyd./2018
Assessment Year: 2014-15

Dy.CIT, Circle 16(1)

Hyderabad

vs.

M/s Lanco Hydro Power Limited

Hyderabad

For Revenue: Smt. N. Esther, D.R.
For Assessee: Shri P. Murali Mohana Rao, AR.
Date of Hearing : 02/08/2021
Date of Pronouncement : 30/08/2021
O R D E R

Facts of the case in brief are that the assessee is a company, filed its return of income for the AY 2014-15 on 29.11.2014 declaring total loss at Rs.3,97,87,752/-. Subsequently the case was selected for scrutiny and the assessment was completed u/s 143(3) of the Income Tax Act, 1961.

2. Aggrieved assessee went in appeal before the CIT(A). The CIT(A) deleted the addition made by the Assessing Officer stating that since there is no exempt income received or receivable during the relevant A.Y., the provisions of sec.14A r.w. rule 8D are not applicable.

3. An identical issue had come for adjudication before the ITAT Hyderabad in number of cases wherein the Bench observed that section 14A refers to disallowance of expenditure "in relation to income" which pre-supposes existence of income in the form of dividend as otherwise section 14A cannot be pressed into service.

4. In regard to ground no.5, (for MAT issue u/s 115 JB) in regard to the disallowance made u/s 14A; once we have dismissed the appeal of the revenue by holding that there is no exempt income, no addition can be called for. In view of this, the ground no.5 raised by the revenue is consequential in nature. Thus, this ground is also dismissed.

5. In the result, Revenue’s appeal is dismissed.

Please find attached the enclosed file for the full judgement