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2019 (6) TMI 1674 - ITAT MUMBAIDisallowance u/s 14A r.w.r. 8D - as argued no exempt income earned by assessee - CIT-A deleted the addition - HELD THAT:- It is an undisputed fact that during this Assessment Year assessee did not receive any exempt income. When no exempt income is received by the assessee, whether there can be any disallowance u/s. 14A has been considered by the Coordinate Benches of this Tribunal and it has been consistently holding that if there is no exempt income there should not be any disallowance u/s. 14A of the Act - See M/s. Ballarpur Industries Limited [2016 (10) TMI 1039 - BOMBAY HIGH COURT] as held that the provisions of Section 14A of the Income Tax Act, 1961 would not apply to the facts of this case as no exempt income was received or receivable during the relevant previous year. It is not the case of the Assessing Officer that any actual income was received by the assessee and the same was includible in the total income. In the facts of the case, the Authorities held that since the investments made by the assessee in the sister concerns were not the actual income received by the assessee, they could not have been included in the total income. It is not in dispute that the assessee has not earned any exempt income during this Assessment Year, therefore in the absence of any exempt income there shall not be any disallowance u/s. 14A - Decided in favour of assessee.
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