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2018 (11) TMI 1050 - ITAT KOLKATADisallowance made u/s 14A - expenditure debited in the taxable divisions of the assessee - Held that:- We find that the assessee had not derived any exempt income in the form of dividend and hence there is no question of applicability of provisions of section 14A thereon. See CIT VERSUS M/S. CHETTINAD LOGISTICS PVT. LTD.[2017 (4) TMI 298 - MADRAS HIGH COURT]. We find no infirmity in the order of the CIT-A deleting the disallowance u/s 14A. Accordingly, the Ground No. 1 raised by the revenue is dismissed. Disallowance u/s 14A made towards agriculture division - Held that:- We find that the assessee had provided segmental annual statement of accounts for each of its divisions. The assessee had claimed agricultural income as exempt after reducing the expenditure attributable to agriculture division from the gross receipts of agriculture division. The assessee had not claimed exemption towards agricultural income on its gross receipts. As claimed exemption u/s 10(1) only for the net agricultural income. We hold that there is no need to take into account any direct or indirect expenses of the agriculture division and apply the provisions of section 14A of the Act thereon. We hold that the CIT-A had rightly deleted the disallowance u/s 14A of the Act in the sum of ₹ 21,13,761/- which does not call for any interference. Accordingly, the Ground No. 2 raised by the revenue is dismissed.
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