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2019 (5) TMI 318 - AT - Income TaxDisallowance u/s 14A read with Rule 8D - assessee has not earned any exempt income in this assessment year - DR contended that since CBDT Circular No. 5 of 2014 mandates that disallowance u/s. 14A should be made irrespective of earning or not of any exempt income - HELD THAT:- As relying on M/S VARDHMAN CHEMTECH PRIVATE LIMITED, CHANDIGARH [2018 (10) TMI 1037 - PUNJAB AND HARYANA HIGH COURT] find no merit in the contention of the DR that in the light of the CBDT Circular No. 5 of 2014 disallowance u/s. 14A of the Act is mandatory irrespective of the fact whether the assessee earns exempt income or not. Since the law declared by the Hon’ble High Court cannot be overridden by the Circular of the CBDT, the addition made in this behalf is directed to be deleted. Therefore, the appeal of the assessee succeeds and stands allowed.
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