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2019 (4) TMI 1220 - AT - Income TaxAddition of unexplained expenditure u/s 69C - no incriminating material found in search and seizure - advertisement expenses - disallowance u/s 14A - additional ground filed by the assessee challenging additions made u/s 153A as bad in law as the same were not made on the basis of incriminating material found during the course of search - HELD THAT:- Since, in the instant case also, a bare perusal of the assessment order shows that there is no mention of any incriminating material found during the course of search with respect to unexplained advertisement expenses or expenditure for earning tax free dividend income, therefore, in absence of any incriminating material found during the course of search, no addition on account of bogus advertisement expenses or disallowance u/s 14A r.w. Rule 8D can be made. In view of the decision of the coordinate Bench of the Tribunal in assessee’s own case [2019 (3) TMI 1023 - ITAT DELHI] , we allow the legal ground raised by the assessee under Rule 27 of the ITAT Rules, 1963 and decide the same in favour of the assessee. Since the assessee succeeds on the legal ground, therefore, the appeal filed by the Revenue is dismissed. Disallowance u/s 14A - no exempt income - HELD THAT:- Since it is an admitted fact that no exempt income has been received by the assessee during the year, therefore, in view of the latest decision of the Hon'ble Supreme Court in the case of PCIT vs. Oil Industry Development Board of India [2019 (3) TMI 1571 - SUPREME COURT OF INDIA] , where it has been held that in absence of any exempt income, no disallowance u/s 14A r.w. Rule 8D is permissible, no disallowance u/s 14A r.w. Rule 8D is called for.
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