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2018 (11) TMI 1844 - AT - Income TaxDisallowance u/s.14A r.w. Rule 8D - assessee contends that since it had earned no exempt income in the year under consideration, no disallowance can be made under Section 14A r.w. Rule 8D - HELD THAT:- In the factual matrix of the case on hand where the assessee has not earned any exempt income in the year under consideration, no disallowance can be made under Section 14A r.w. Rule 8D. In coming to this view, we drew support from the decision of the Hon'ble High Court of Delhi in the case of Cheminvest Ltd. Vs. CIT [2015 (9) TMI 238 - DELHI HIGH COURT] wherein held that when no exempt income is earned in the year under consideration, then no disallowance under Section 14A r.w. Rule 8D can be made. In similar factual circumstances as in the case on hand, where the assessee had not earned exempt income in the year under consideration. no disallowance could be made under Section 14A r.w. Rule 8D where the assessee had not earned exempt income in the year under consideration. Also see M/S. CHETTINAD LOGISTICS PVT. LTD. [2017 (4) TMI 298 - MADRAS HIGH COURT] - Decided in favour of assessee.
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