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2018 (3) TMI 1902 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - Addition to be restricted to the extent of exempt income - HELD THAT:- We find that the Hon'ble Delhi High Court also in the case Cheminvest Ltd. vs. CITI [2015 (9) TMI 238 - DELHI HIGH COURT] has held that if there is no exempt income, there can be no question of making any disallowance u/s 14A. Similar view has been taken in CIT vs. Holcim India P. Ltd. [2014 (9) TMI 434 - DELHI HIGH COURT]. The net effect of these decisions is that the disallowance u/s 14A gets restricted to the extent of exempt income, even if the provisions of the section are attracted. In view of the above precedents, which are squarely applicable to the facts of the instant case, we limit the disallowance to the extent of exempt income. Appeal of assessee is partly allowed.
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