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2016 (2) TMI 677 - AT - Income TaxDisallowance u/s 14A - Held that:- We have observed that the assessee company has own funds of around ₹ 40.79 crores as at 31-03-2010 which comprises share capital and reserves as per balance sheet filed in the paper book. We have also perused the copy of balance sheet as well as the P&L account where it is clear that the assessee company has earned no dividend income during the previous year relevant to the assessment year and in view in the case of Cheminvest Ltd.(2015 (9) TMI 238 - DELHI HIGH COURT ) the ratio laid down therein is squarely applicable to the present case of the assessee company wherein held that the expression ‘does not form part of the total income’ in section 14A of the envisages that there should be an actual receipt of income, which is not includible in the total income, during the relevant previous year for the purpose of disallowing any expenditure incurred in relation to the said income. In other words, section 14A will not apply if no exempt income is received or receivable during the relevant previous year. Thus disallowance deleted - Decided in favour of assessee
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