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2018 (7) TMI 1868 - AT - Income TaxDisallowance of interest expenditure u/s 14A - Held that:- After going through the judgment in the case of Cheminvest Limited [2015 (9) TMI 238 - DELHI HIGH COURT] section 14A will not apply if no exempt income is received or receivable during the relevant previous year.” We, therefore hold that since during the year, under consideration, no exempt income has been earned by the assessee, no disallowance u/s 14A of the Act was called for. - Decided in favour of assessee Disallowance of interest on advances made to directors - Held that:- Assessing Officer has not brought out sufficient details on record for alleged interest disallowance whereas the assessee has been successful in demonstrating that in view of having sufficient interest free capital and reserve, disallowance of interest expenditure was not called for. We accordingly delete the interest disallowance - Decided in favour of assessee Disallowance invoking provisions of section 14A read with Rule 8D on the purchase of agriculture land - Held that:- No interest disallowance was called for. We, however, confirm the disallowance of ₹ 69,056/- being 0.5% of the investment in agricultural land as there are certain expenditure which gets inter-mingled with administrative expenditure incurred by the assessee during the year are for the purpose of earning agricultural income. This ground of the assessee is, therefore, partly allowed.
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