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2021 (8) TMI 98 - AT - Income TaxDeemed dividend addition u/s 2(22) - AO found that the assessee purchased shares from private limited companies through its partner having the share holding more than 10% - HELD THAT:- We deem it proper to remand the matter to the file of AO to decide the issue regarding the applicability of section 2(22)(e) of the Act in conformity with the directions rendered by this Tribunal in earlier years. Thus, the grounds raised by the assessee are allowed for statistical purpose. Disallowance u/s.14A r.w. Rule 8D - HELD THAT:- The fact remains admitted by both the parties before us and also born by the record that no exempt income was derived by the assessee during the year under consideration. CIT(A) examined the record and found that the assessee has not earned any exempt income warranting the disallowance u/s. 14A r.w. Rule 8D. Admittedly, the circular issued by the CBDT is not binding on the appellate authority as rightly held by the CIT(A) in impugned order at page No. 13 and it is justified - as it is clearly established that the assessee has not earned any exempt income. Therefore, no disallowance is warranted by applying the method prescribed under Rule 8D. Therefore, in our opinion the disallowance made by the AO is not warranted and the CIT(A) rightly deleted the same, therefore, we find no infirmity in the order of CIT(A). Thus, the grounds raised by the Revenue fails and are dismissed.
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