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2015 (7) TMI 1139 - AT - Income TaxDisallowance under section 14A read with Rule 8D - Held that:- In the light of the judgment of Hon’ble Jurisdictional High Court in the case of CIT vs. Corrtech Energy (P) Ltd. (2014 (3) TMI 856 - GUJARAT HIGH COURT) the disallowance under section 14A cannot be made when no income is claimed to be exempt in that particular year. That precisely is the undisputed situation before us. In the present year, the assessee does not have any income from the related investments. In this view of the matter, the disallowance under section 14A must be held to be unsustainable in law. As for the question whether this plea can be taken up in the second round of proceedings, we find that it is a purely legal and fundamental issue which can be taken up before us even at this stage. We, therefore, direct the Assessing Officer to delete the disallowance.
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