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2021 (9) TMI 236 - AT - Income TaxDisallowance u/s 14A - whether assessee has not earned exempt income ? - HELD THAT:- No disallowance u/s. 14A is permissible when the assesse has not earned exempt income. This proposition is further supported by the decision in the case of Delite Enterprises [2009 (2) TMI 498 - BOMBAY HIGH COURT] and in Maxopp Investment Ltd.[2018 (3) TMI 805 - SUPREME COURT] wherein the proposition that disallowance cannot exceed the exempt income has been upheld. As an obvious corollary, when there is no exempt income there cannot be disallowance u/s 14A. Hence, we do not find any infirmity in the order of Ld.CIT(A). Contribution made towards the Employees Provident Fund - Addition on the ground that it has paid beyond the due dates prescribed u/s. 2(24)(x) r.w.s. 36(1)(va) - CIT-A deleted the addition - HELD THAT:- It is not disputed that the impugned amounts were paid/deposited before the due date of filing of the return. See GHATGE PATIL TRANSPORTS LTD. [2014 (10) TMI 402 - BOMBAY HIGH COURT] - Ld. DR could not controvert that the issues are could not covered in favour of the assessee. Accordingly, we uphold the order of Ld.CIT(A).
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