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2016 (2) TMI 1200 - AT - Income TaxAddition u/s 14A - Held that:- The undisputed facts of the case are that the assessee has not received any tax-free income during the year. Neither the learned CIT (Appeals) nor the learned D.R. during the course of hearing before us has controverted this fact. In this factual situation, the I.T.A.T., Chandigarh Bench in M/s BCL Industries & Infrastructures Ltd. [2016 (1) TMI 1250 - ITAT CHANDIGARH] No disallowance under section 14A of the Act can be made if there is no taxable income earned during the year. Assessee has not been able to demonstrate before us with the help of documents that no tax free income has actually been earned during year. In view of this, we think it proper to send the case back to the file of the Assessing Officer. If there is no tax free income during the year, the Assessing Officer is directed not to make disallowance under section 14A of the Act. Otherwise, he has to decide the case as per law. - Decided in favour of assessee.
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