– SLP dismissed against High Court ruling that section 14A cannot be invoked where no exempt income was earned by assessee in relevant assessment year

[2018] 95 taxmann.com 250 (SC)

SUPREME COURT OF INDIA

Commissioner of Income Tax, (Central) 1

v.

Chettinad Logistics (P.) Ltd.*

A.K SIKRI AND ASHOK MENON, JJ.

SPECIAL LEAVE PETITION (CIVIL) DIARY NO. 15631 OF 2018†

JULY  2, 2018

Section 14A, of the Income-tax Act, 1961, read with rule 8D of the Income-Tax Rules, 1962 – Expenditure incurred in relation to income not includible in total income (General principle) – Assessment year 2011-12 – High Court by impugned order held that section 14A can only be triggered, if, assessee seeks to square off expenditure against income which does not form part of total income under Act; rule 8D only provides for a method to determine amount of expenditure incurred in relation to income, which does not form part of total income of assessee and it cannot go beyond what is provided in section 14A – It further held that where no exempt income i.e., dividend, was earned in relevant assessment year by assessee, section 14A could not be invoked – Whether SLP against said impugned order was to be dismissed – Held, yes [Para 1] [In favour of assessee]

CASE REVIEW

CIT v. Chettinad Logistics (P.) Ltd. [2017] 80 taxmann.com 221/248 Taxman 55 (Mad.) (para 1) [SLP dismissed].

Ms. Pinky Anand, ASG Ms. Tanisha Samanta, Parthiv K. Goswani, Ms. Saudamini Sharma, Advs. and Mrs. Anil Katiyar, AOR for the Petitioner.

ORDER

1. The Special Leave Petition is dismissed on the ground of delay as well as on merits.

JYOTI

*In favour of assessee.

†Arising out of order of Madras High Court in CIT v. Chettined Logistics (P.) Ltd. [2017] 80 taxmann.com

 221/248 Taxman 55.