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2018 (9) TMI 1991 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - CIT(Appeals) by placing reliance on the order of this Tribunal in M/s Royala Corporation [2016 (1) TMI 239 - ITAT CHENNAI] directed the Assessing Officer to restrict the disallowance to the extent of exempted / dividend income earned by the assessee - HELD THAT:- As rightly submitted by assessee, the Madras High Court in Redington (India) Ltd. [2017 (1) TMI 318 - MADRAS HIGH COURT] and Chettinad Logistics Pvt. Ltd. [2017 (4) TMI 298 - MADRAS HIGH COURT] categorically found that there cannot be any disallowance when the assessee has not earned any exempted income. Therefore, this Tribunal is of the considered opinion that the CIT(Appeals) has rightly placed his reliance on the order of this Tribunal in Royala Corporation Ltd.[2016 (1) TMI 239 - ITAT CHENNAI]. The only contention of the Ld. D.R. before this Tribunal is that an appeal is pending before the High Court. It is nobody’s case that the High Court has stayed operation of the order of this Tribunal in M/s Royala Corporation Ltd. (supra). Mere pending of appeal before the High Court cannot be a reason to take a different view by this Tribunal. Therefore, this Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed. There cannot be any disallowance under Section 14A of the Act when there was no exempted income or dividend income earned by the assessee, this Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed.
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