TMI Blog2021 (9) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... 8) TMI 126 - ITAT DELHI-B] but the said order of the Tribunal was reversed by the Hon ble Delhi High Court 2015 (9) TMI 238 - DELHI HIGH COURT] wherein as clearly held that unless exempted income earned during the relevant assessment year, there cannot be any disallowance u/s 14A . Thus since no exempted income is earned during the relevant assessment year, no disallowance u/s 14A of the I.T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ra 5 of the assessment order. 4. Aggrieved by the order of assessment dated 30.03.2016 passed u/s 143(3) of the I.T.Act, the assessee preferred an appeal to the first appellate authority. The CIT(A) held that since no exempted income was earned during the relevant assessment year, no disallowance can be made u/s 14A of the i.T.Act. In holding so, the CIT(A) followed the order of the Tribunal in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned during the relevant assessment year. The A.O. while making the disallowance u/s 14A of the I.T.Act, had relied on the Special Bench order of the Tribunal in Cheminvest Ltd. v. ITO reported in 121 ITD 318. The said order of the Tribunal was reversed by the Hon ble Delhi High Court on 02.09.2015. The judgment of the Hon ble Delhi High Court is reported in 378 ITR 33, wherein the Hon ble Delhi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in which Their Lordships have categorically held that where the assessee had not earned any taxable income in the relevant assessment year in question, then the corresponding expenditure could not be worked out for disallowance. Thus, no disallowance u/s. 14A of the Act can be made in the year in which no exempt income had been earned or received by the assessee. The view taken by the Hon ble Del ..... X X X X Extracts X X X X X X X X Extracts X X X X
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