Pr. Commissioner Of Income Tax -8 v. M/S. Rediff.com India Ltd

IN THE HIGH COURT OF JUDICATURE AT BOMBAYO.O.C.J.INCOME TAX APPEAL NO. 610 OF 2017 Pr. Commissioner of Income Tax -8 Versus ..Appellant M/s. Rediff.Com India Ltd ..Respondent ................... Mr. Suresh Kumar for the Appellant ................... CORAM : AKIL KURESHI & S.J. KATHAWALLA, JJ. DATE : AUGUST 5, 2019. P.C.: 1.Revenue is in the appeal against the judgment of the Income Tax Appellate Tribunal, Mumbai ("the Tribunal" forshort) dated 13.4.2016 raising following question for ourconsideration:- " Whether on the facts and circumstances of the case and in law, theTribunal was justified to confirm the order of the CIT(A) whereinrestricting the disallowance made by the Assessing Officer of Rs.42,49,997/- to Rs. 5,00,000/- under Section 14A r/w Rule 8D of theAct, ignoring the facts that the disallowance worked out by followingRule 8D provides uniform mechanism for working out disallowance ofexpenses which are attributable to earning exempt income?"Tribunal was justified to confirm the order of the CIT(A) whereinrestricting the disallowance made by the Assessing Officer of Rs.42,49,997/- to Rs. 5,00,000/- under Section 14A r/w Rule 8D of theAct, ignoring the facts that the disallowance worked out by followingRule 8D provides uniform mechanism for working out disallowance ofexpenses which are attributable to earning exempt income?" 2.Perusal of the impugned judgment of the Tribunalwould show that while confirming the view of the CIT(A), the Tribunal recorded a finding that the assessee had not earnedany exempt income during the year under consideration. Inthat view of the matter, disallowance under Section 14A ofthe Income Tax Act was not found justified. Such an issuehas been examined by this Court on several occasions,reference can be made to the order dated 4.2.2019 passedin Income Tax Appeal No. 1672 of 2016. In the result, theIncome Tax Appeal is dismissed. [ S.J. KATHAWALLA, J. ] [ AKIL KURESHI, J ]