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2019 (1) TMI 1569 - AT - Income TaxDisallowance u/s. 14A - no exempt income has been earned during the year - HELD THAT:- The issue in present ground with respect to disallowance u/s. 14A of the Act. It is an undisputed fact that on the investment made by the assessee, no exempt income has been earned during the year. We find that in the case of CIT Vs. Cortech Energy P. Ltd. [2014 (3) TMI 856 - GUJARAT HIGH COURT] has held that when there is no claim for exempt income, Section 14A would have no application. We also find that Hon’ble Delhi High Court in the case of CIT Vs. Holcim India P. Ltd. (2014) 90 CCH 81 (Delhi) has held that where no dividend income was earned by assessee, disallowance u/s. 14A is not warranted. Further the Balance Sheet of assessee reveals that the availability of interest free funds in the form of Share Capital and Reserves and Surplus is much more than the investment held by the assessee. Also see HDFC BANK LTD. VERSUS THE DEPUTY COMMISSIONER OF INCOME TAX-2 (3) , MUMBAI & OTHERS [2016 (3) TMI 755 - BOMBAY HIGH COURT] - in the present case no disallowance u/s. 14A us caked for. Thus, the grounds of appeal of assessee is allowed
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