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2020 (9) TMI 877 - HC - Income TaxDisallowance u/s 14A - Whether there is no tax free income earned during the year ? - ITAT upholding the order of the CIT(A) that no disallowance u/s 14A can be made - HELD THAT:- CIT(A) as well as the Appellate Tribunal rightly applied the dictum as laid by the Supreme Court in the case of Maxopp Investment Ltd [2018 (3) TMI 805 - SUPREME COURT] as held that as the assessee had not made any claim for the exemption of any income from payment of tax, the disallowance under Section 14A of the Act cannot be made. To attract the provisions of Section 14A of the Act, 1961, it is necessary that the assessee should have earned any exempt income. If the assessee has not earned an exempt income and has not claimed so in his return of income, then the provisions of Section 14A would not be applicable. Concurring finding of fact recorded by the two authorities is that in the year under consideration, the assessee company had not earned any exempt income and had not claimed any such exempt income in his return of income. - Decided against revenue.
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