Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (11) TMI 1636 - AT - Income TaxDisallowance u/s 14A - as argued no dividend has been earned by the assessee during the years under assessment - HELD THAT:- Undisputedly, no dividend has been earned by the assessee during the years under assessment i.e. AYs 2009-10 & 2010-11. Ld. CIT(A) made disallowance in both the assessment years merely on the basis of presumption and assumptions that, “since the assessee’s main activity is investment, therefore, it cannot be denied that the funds has been utilized for investment activities.” When undisputedly no dividend income has been earned by the assessee during the year under assessment, no disallowance can be made. As in the case of Cheminvest Limited vs. CIT [2015 (9) TMI 238 - DELHI HIGH COURT] has held that, “In the absence of exempt income, disallowance u/s 14A of any amount was not permissible.” So, we are of the considered view that since assessee has not earned any dividend income nor proved to have incurred any expenditure on the investment during the year under assessment, no disallowance can be made, hence disallowance - Decided in favour of assessee.
|