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2019 (2) TMI 1356 - AT - Income TaxDisallowance made u/s 14A r/w rule 8D - investment in unquoted shares. - no exempt income/ dividend income has been earned in the relevant previous year - HELD THAT:- In the absence of any exempt income earned in the relevant assessment year, no disallowance under section 14A of the Act can be made. Further, being bound by the decision of the Hon'ble Jurisdictional High Court as well as other High Courts as referred to above, we are unable to accept the proposition laid down in Lally Motors India Pvt. Ltd. [2018 (5) TMI 794 - ITAT AMRITSAR] and M.A. Alagappan [2017 (7) TMI 427 - ITAT CHENNAI] cited by the learned Departmental Representative. We uphold the decision of the learned Commissioner (Appeals) in deleting the disallowance made under section 14A of the Act only on the proposition that in absence of any exempt income earned by the assessee in the relevant assessment year no disallowance under section 14A of the Act can be made. Ground raised is dismissed.
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