RLF LTD. Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THIS is an appeal by the assessee is directed against the order dated 21.5.2013 of Ld. CIT(A) -XVIII, New Delhi on the following grounds: -

(2.) FACTS of the case in brief are that the Return of Income declaring a total income of Rs. NIL and a book profit u/s. 115JB of Rs. 1,11,215/ - was filed by the assessee on 30.9.2009. The return was processed u/s. 143(1) of I.T. Act, 1961. The case was selected for compulsory scrutiny under CASS norms. Notice u/s. 143(2) was issued on 11.8.2009, which was duly served upon the assessee. Subsequently, notice u/s. 142(1) of the I.T. Act, 1961 alongwith questionnaire was issued to the assessee on 21.7.2010 which was duly served upon the assessee. In response to these notices, the required details were filed. During the year under consideration, the assessee company was engaged in the business of manufacture and exports of embroidered fabrics and financer. Copy of profit and loss account, balance sheet and suit report u/s. 44AB of the I.T. Act, 1961 was furnished by the assessee during the course of assessment proceedings. Thereafter, the AO completed the assessment vide its order dated 21.12.2010 and made the various additions.

(3.) AGGRIEVED with the order of the Ld. CIT(A) dated 21.5.2013, assessee is in appeal before us. The ld. Counsel for the assessee reiterated the submissions made before the authorities below and further submitted that as there was no dividend income received by the assessee, the provisions of section 14A of the Act were not applicable and no disallowance was called for. It was further stated that there should have been a positive income for making the disallowance u/s. 14A of the Act r.w. Rule 8D of the Income Tax Rules, 1962. The reliance was placed on the following case law: