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2018 (7) TMI 356 - AT - Income TaxDisallowance u/s 14A - Held that:- The issue is squarely covered by the decision of Hon’ble Delhi High court in the case of Cheminvest Ltd. vs. CIT (2015 (9) TMI 238 - DELHI HIGH COURT), wherein the disallowance is to be restricted to the extent of exempt income only. We restrict the disallowance to the extent of exempt income of ₹ 10.75 only. This issue of the assessee’s appeal is partly allowed. Disallowing the interest expenses - Held that:- NMW has not revised TDS return till 16-08-2014. NMW is revised the TDS return only when the Revenue pointed out to the assessee to reconcile the gross receipts with TDS return. Accordingly, we are of the view that entire reversal of interest is an afterthought to reduce the taxable income of the assessee and this is not done bonafide. Even now before us, the assessee could not substantiate that NMW was facing financial hardship. Assessee relied on the case of CIT vs. Neon solutions Pvt. Ltd (2016 (4) TMI 1162 - BOMBAY HIGH COURT), but we find that in the case before Hon’ble Bombay High court the board resolution for waiver of interest on debentures was passed on 31-05-2004 and approved by board for waiver of interest for 6 years and including AY 2007-08 and 2009-10. But in the present case before us, the reduction was done after almost 2 years i.e. on 31-07-2012 for the AY 2012-13. Hence, the facts are entirely different and distinguishable. - Decided against assessee.
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