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2023 (5) TMI 112 - ITAT AHMEDABADDisallowance u/s. 14A r.w.r. 8D - Whether no exempt income was earned by the assessee? - HELD THAT:- As in the case of Era Infrastructure [2022 (7) TMI 1093 - DELHI HIGH COURT] and also various high courts and tribunals decisions on similar facts, wherein it has been held that no disallowance could be made u/s. 14A r.w.r. 8 if no exempt income was earned by the assessee. We are of the considered view that it is a well-settled law on the subject that no disallowance can be made under section 14A in case the assessee has not earned any exempt income or in excess of income claimed to be exempt. Disallowances made under section 14A read with rule 8D could not exceed amount of exempt income earned by assessee during year - Decided in favour of assessee. Nature of expenditure - Addition on account of R& D expenditure - revenue or capital expenditure - AO held that entire R&D expenditure is of capital nature and disallowed the sum - CIT-A deleted the addition - HELD THAT:- As the case of the assessee is covered in its favour in view of the decision of Ahmedabad ITAT in assessee’s own case for assessment year 2013-14 [2020 (10) TMI 404 - ITAT AHMEDABAD] which was rendered on identical set of facts. Further, the counsel for the assessee submitted that ld. CIT(A) allowed the appeal of the assessee with respect to this ground of appeal by placing reliance on the aforesaid decision of ITAT Ahmedabad for assessment year 2013-14. No infirmity in the order of ld. CIT(A) in allowing the assessee’s appeal with respect to this ground of appeal, so as to call for any interference. Decided against revenue.
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