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2019 (2) TMI 1072 - AT - Income TaxDisallowance u/s. 14A - no exempt income during the relevant assessment year - Held that:- We find that this issue is covered in favour of assessee. The Hon'ble Delhi High Court in the case of Cheminvest Ltd. in (2015 (9) TMI 238 - DELHI HIGH COURT) and Redington (India)Ltd., Vs. Addl. CIT [2017 (1) TMI 318 - MADRAS HIGH COURT] have held that the disallowance u/s. 14A cannot be made where there is no exempt income during the relevant assessment year. Therefore, we set aside the order of CIT(A) and direct the AO to delete the addition made by him. Since there is no dividend in come earned from the investments, no disallowance u/s.14A is called for. Therefore, the disallowance u/s. 14A r.w.Rule 8D(iii) is deleted. - Decided in favour of assessee.
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