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2016 (6) TMI 104 - AT - Income TaxDisallowance u/s 14A - Held that:- Disallowance made by the Assessing Officer without recording any satisfaction as required by the mandate of Sub Section (2) of Sub Section 14 A of the Act cannot be held as sustainable. Disallowance u/s 14A when no exempt dividend income was received during the period under consideration - Held that:- In this case in hand neither the A.O nor the CIT(A) has controverted this fact that the assessee has not earned and claimed any exempt dividend income during the year. At this juncture, it would be relevant appropriate to consider the ratio of the recent decision of Hon'ble High Court of Delhi in the case of Chemnivest Ltd Vs. CIT(A) (2015 (9) TMI 238 - DELHI HIGH COURT) wherein their lordships speaking for the jurisdictional High Court held that when no exempted income was earned by the assessee in the relevant assessment year, and since the genuineness of the expenditure incurred by the assessee in not in doubt then no disallowance could be made u/s 14A of the Act. - Decided in favour of assessee
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