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2022 (5) TMI 1327 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - as submitted assessee has not earned any income exempt - HELD THAT:- As admitted by the DRP, it is clear that the assessee has not earned any income exempt under the tax during the relevant year under consideration. Hence, the ratio laid down in the case of Cheminvest Limited [2015 (9) TMI 238 - DELHI HIGH COURT] is clearly applicable to the case of the assessee as confirmed by SURESH VERMA [2018 (7) TMI 385 - SC ORDER] - thus we are of the considered view that there cannot be a disallowance u/s 14A of the Act when the assessee has not earned any income exempt under the Income-tax Act. We, therefore, direct the AO to delete the addition made on account of disallowance u/s 14A of the Act r.w.r.8D of the I.T.Rules. This ground is allowed in favour of the assessee. Disallowance on account of deduction claimed u/s 43B towards interest payment - payment is done by the assessee before the due date for filing the return of income u/s.139(1) - HELD THAT:- From the reading of the section it is clear that the assessee is entitled to claim deduction in the year in which the actual payment happens provided the said payment is done by the assessee before the due date for filing the return of income u/s.139(1) of the Act. We notice that the assessee has submitted the bank statements in support of the payment made towards interest before the DRP - We also notice that the evidence submitted by the assessee in the form of bank statements has not been properly examined by the lower authorities. Actual payment is the very basis on which deduction u/s.43B is to be allowed and the bank statement substantiating the payments needs to be verified. Hence we remit the issue back to the AO to verify the evidence afresh. Needless to say, the assessee should be given a proper opportunity of being heard by the AO. This ground is allowed for statistical purposes.
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