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2016 (4) TMI 1040 - AT - Income TaxDisallowance u/s 14A - Held that:- AO has wrongly disallowed the total expenditure by applying the provisions of Section 14A read with Rule 8D of the I.T. Act and similarly, Ld. CIT(A) has also wrongly restricted the disallowance on account of administrative expenses in spite of the fact that assessee has not received any exempt income during the relevant previous year. Therefore, respectfully, following the decision of the Hon’ble High Court in the case of Cheminvest Limited vs. Commissioner of Income Tax-VI (2015 (9) TMI 238 - DELHI HIGH COURT ), we allow the Appeal of the Assessee and dismiss the Appeal filed by the Revenue by holding that the provisions of Section 14A is not applicable in the case of the assesse, because the Assessee Company has not claimed any exempt income during the relevant assessment year and therefore, no disallowance u/s 14A of the Act is permissible. - Decided in favour of assessee
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