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2018 (1) TMI 27 - ITAT MUMBAIDisallowance u/s 14A r.w. Rule 8D of the Income Tax Rules, 1962 - whether disallowance u/s 14A r.w. Rule 8D can be made in a case when there is no exempt income? - Held that: - similar issue decided in the case of Commissoner of Income Tax (Ii) Kanpur Versus M/s. Shivam Motors (P) Ltd. [2014 (5) TMI 592 - ALLAHABAD HIGH COURT], where it was held that in absence of any tax free income earned by the assessee, disallowance u/s 14A could not be made - disallowance made by AO deleted. Disallowance u/s 36(1)(iii)/ addition on account of notional income u/s 5 of the Act - Held that: - Gateway has neither provided for interest in its books of accounts nor paid any interest till date. The other condition of improbability of realization is also applicable here - the addition cannot be made even u/s 5 of the Act - the addition of ₹ 83,91,532/- made by the AO in AY 2009-10 and ₹ 3,22,04,906/- in AY 2010-11 deleted. Appeal allowed.
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