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2015 (9) TMI 1535 - AT - Income TaxDisallowance u/s. 14A - Held that:- No disallowance u/s. 14A can be made in a year in which no exempt income has been earned or received by the assessee. See Cheminvest Limited Versus Commissioner of Income Tax-VI [2015 (9) TMI 238 - DELHI HIGH COURT ] - Decided in favour of assessee Disallowance u/s. 41(1) - Held that:- As gone through Annexure XIII of the statement of account, which is details of Sundry Creditors – Unmoved. We find force in the contention of the learned counsel. The balance outstanding in the name of Acquatech Proflow Pipe Lining Pvt. Ltd, is not ₹ 19,84,908/- but ₹ 9,67,180/- and as per the list of sundry debtors, Tolani Fabricators is debtor and not creditor. Therefore, atleast to this extent i.e. balance of Tolani Fabricators cannot be added u/s. 41(1) of the Act. We accordingly, direct the AO to delete the addition of ₹ 10,08,641/-. In so far as the balances of other creditors are concerned, in our considered opinion, the claim of the assessee needs to be verified at the assessment stage. We, therefore, restore the issue to the file of the AO. The assessee is directed to demonstrate that the impugned creditors have been written back in the subsequent years to the satisfaction of the AO and the AO is directed to verify the same and if the claim of the assessee is found correct the additions should not be made.
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