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2020 (10) TMI 518 - HC - Income TaxDisallowance u/s 14A read with Rule 8D - whether tax payer in a particular year has not earned any exempted income? - Tribunal has held that since the assessee had not received any dividend on the investment and since there was no earning to exempt income, therefore, there can be no disallowance under Section 14A - HELD THAT:- The aforesaid issue is no longer res-integra and is covered by the decision of the Supreme Court in MAXOPP INVESTMENT LIMITED [2018 (3) TMI 805 - SUPREME COURT] as well as Circular No.5/2014 dated 11.02.2014 issued by the Central Board of Direct Taxes which clearly provides that disallowance under Section 14A of the Act read with Rule 8D has to be made even when the tax paid for a particular year is not earned in exempt income, the substantial question of law framed by this Court is answered in negative and in favour of revenue. Order of the Tribunal insofar as it pertains to disallowance under Section 14A of the Act read with Rule 8D of the Income Tax Rules is hereby quashed.
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