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2016 (2) TMI 789 - AT - Income TaxDisallowance u/s 14A - Held that:- In the absence of any tax free income the corresponding expenditure could not be worked out for disallowance. In the instant case also, the admitted fact is that assessee has not earned any tax free income, therefore, Circular No. 5 of 2014 dated 11.2.2014 issued by CBDT is contrary to the law laid down by the different High Courts directly on the issue in hand. In view of the above discussion, and the decision of the jurisdictional High Court in the case of Cheminvest Vs. CIT (2015 (9) TMI 238 - DELHI HIGH COURT ) and Maxopp Investment Ltd. (2011 (11) TMI 267 - Delhi High Court ), we hold that disallowance made u/s 14A has deserves to be deleted, as the assessee has not earned/received exempt income during the previous year relevant to the assessment year under appeal. - Decided in favour of assessee
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