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2020 (6) TMI 73 - AT - Income TaxDisallowance u/s 14A - assessee submitted that admittedly there was no exempt income earned by the assessee during the year under consideration - HELD THAT:- It is not in dispute that the assessee has not earned any dividend income from the investment made during the year under consideration. The question arises for consideration is when the assessee has not earned any exempt income / dividend during the year under consideration, can there be any disallowance u/s.14A read with Rule 8D(ii). This issue was examined by the Madras High Court in Redington India Ltd [2017 (1) TMI 318 - MADRAS HIGH COURT] wherein as found that there was no disallowance when there was no exempt income. Madras High Court in the case of Chettinad Logistics Pvt. Ltd. [2017 (4) TMI 298 - MADRAS HIGH COURT] examined this issue and by following the judgment in Redington India Ltd., found that there cannot be any disallowance when there was no exempt income. In fact, the Revenue filed an appeal before the Apex Court in Chettinad Logistics Pvt. Ltd. The appeal filed by the Revenue was dismissed. In those circumstance, this Tribunal is of the considered opinion, the CIT(A) is not justified in observing that the judgment of Madras High Court in Redington India Ltd., was overruled by the Apex Court [2018 (7) TMI 567 - SC ORDER] There may be difference of opinion with regard to issues arises for consideration. Irrespective of the personal difference of opinion, the CIT(A) while deciding the appeal is bound to follow the judgment of the Apex Court and the jurisdictional High Court. Judicial discipline demand that all authorities in the State of TamilNadu and Pondicherry has to follow the judgment of the Madras High Court including the present CIT(A). Therefore, we are unable to uphold the order of the CIT(A). Accordingly, the orders of both the authorities below are set aside and the disallowance made by the Assessing Officer U/s.14A of the Act is deleted. - Decided in favour of assessee.
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