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2019 (6) TMI 587 - AT - Income TaxDisallowance u/s 14A - HELD THAT:- No disallowance is to be done under 14A if no exempt income is earned . See CHEMINVEST LIMITED VERSUS COMMISSIONER OF INCOME TAX-VI [2015 (9) TMI 238 - DELHI HIGH COURT] and BALLARPUR INDUSTRIES LIMITED [2016 (10) TMI 1039 - BOMBAY HIGH COURT]. Disallowance on purchase of tenancy right - revenue or capital expenditure - HELD THAT:- We find that assessee has paid the aforesaid sum as compensation for obtaining the premises on lease for a period of five years. Assessee had paid the sum in AY 2011-12. Assessee has amortized the aforesaid sum at the rate of 20% for the period of five years of the lease. Revenue allowed the aforesaid amortisation in the earlier two years. AO has disallowed the expenses for the current year. On the facts and circumstances, it is clear that assessee has not spent the amount for purchase of any capital asset. On the touchstone of decision from in the case of Madras Auto Service [1998 (8) TMI 1 - SUPREME COURT] the entire amount was allowable as revenue expenditure. However, the assessee has been claiming the sum proportionately over the period of lease. This has been allowed in earlier two years. In absence of any change in facts and circumstances in our considered opinion there was no reason for the AO to take a different stand. - Decided against revenue.
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