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2020 (12) TMI 290 - AT - Income TaxDisallowance u/s 14A read with Rule 8D - assessee has incurred huge expenses in relation to the huge investments in shares and mutual funds - HELD THAT:- It is clear from the records that that there was no exempt income attributable in the hands of the assessee. Therefore, applying Section 14A read with Rule 8D is not appropriate on part of Assessing Officer. CIT(A) rightly held that no expenditure can be disallowed against Nil exempt income and this view is also supported by the decision of the Jurisdictional High Court of Delhi in case of CIT Vs. Holcim India Pvt. Ltd. [2014 (9) TMI 434 - DELHI HIGH COURT] and Chemnvest Investment Ltd.[2015 (9) TMI 238 - DELHI HIGH COURT]. The Hon’ble Apex Court has clearly set out in Maxopp Investment Ltd.[2018 (3) TMI 805 - SUPREME COURT] that the expenditure should be actually incurred and there should be exempt income. But in assessee case there is a clear finding by Assessing Officer as well as by the CIT(A) that there is no exempt income. Therefore, the appeal of the Revenue is dismissed.
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