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2019 (8) TMI 150 - AT - Income TaxDisallowance u/s. 14A r.w. Rule 8D(2)(iii) - no exempt income had been earned or received by the assessee - HELD THAT:- In the case on hand admittedly, the factual position was that the assessee had not earned or received any exempt income in the previous year relevant to assessment year 2013-14. In these circumstances, in our considered view, the ratio of the decision of Cheminvest Ltd. [2015 (9) TMI 238 - DELHI HIGH COURT] would apply squarely in the case on hand. The Hon’ble High Court in the aforesaid judgement held that no disallowance under section 14A of the Act could be made in a year in which no exempt income had been earned or received by the assessee. It was held that the expression ‘does not form part of the total income’ in section 14A envisages that there should be an actual receipt of income which is not includible in the total income during the relevant previous years for the purpose of disallowing any expenditure incurred in relation to the said exempt income. - Decided in favour of assessee.
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