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2019 (1) TMI 1938 - ITAT RAIPURDisallowance u/s. 14A r.w.r. 8D - Income from shares is exempt from tax - assessee submitted that assessee has not earned any exempt income and therefore provisions of section 14A are not applicable - HELD THAT:- It is an undisputed fact that on the investment made by the assessee, no exempt income has been earned during the year. We find that Hon'ble Gujarat High Court in the case of CIT Vs. Cortech Energy P. Ltd. [2014 (3) TMI 856 - GUJARAT HIGH COURT] has held that when there is no claim for exempt income, Section 14A would have no application. We also find that in the case of CIT Vs. Holcim India P. Ltd. [2014 (9) TMI 434 - DELHI HIGH COURT] has held that where no dividend income was earned by assessee, disallowance u/s. 14A is not warranted. Further the Balance Sheet of assessee reveals that the availability of interest free funds in the form of Share Capital and Reserves and Surplus is much more than the investment held by the assessee. On the issue of availability of free funds being more than investment, we find that Hon'ble Bombay High Court in the case of HDFC [2016 (3) TMI 755 - BOMBAY HIGH COURT] Before us Revenue has not pointed any contrary binding decision nor has demonstrated that the aforesaid decision has been set aside or overruled by higher judicial authority. Considering the totality of aforesaid facts, we are of view that in the present case no disallowance u/s. 14A us caked for. Thus, the grounds of appeal of assessee is allowed
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