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2023 (7) TMI 1316 - HC - Income TaxDisallowance u/s 14A - no income exempt from tax had been earned during the relevant period - ITAT sustaining the deletion of disallowance - HELD THAT:- The issue is covered by case Cheminvest Limited [2015 (9) TMI 238 - DELHI HIGH COURT], M/S. CHETTINAD LOGISTICS PVT. LTD [2017 (4) TMI 298 - MADRAS HIGH COURT] also confirmed by SC [2018 (7) TMI 567 - SC ORDER] and IL And FS Energy Development Co Ltd [2023 (5) TMI 1266 - DELHI HIGH COURT] Thus held that the expression “does not form part of the total income” in Section 14A of the envisages that there should be an actual receipt of income, which is not includible in the total income, during the relevant previous year for the purpose of disallowing any expenditure incurred in relation to the said income. Section 14A will not apply if no exempt income is received or receivable during the relevant previous year. Decided in favour of assessee.
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