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2022 (6) TMI 410 - Income Tax
Head Note / Extract:
Addition u/s 14A - exempt income earned during the year - HELD THAT:- When the assessee company had admittedly not received any exempt income during the year under consideration, therefore, no disallowance u/s.14A of the Act was called for in its hand. Our aforesaid view is fortified by the judgment in the case of CIT Vs. Chettinad Logistics Pvt. Ltd.[2018 (7) TMI 567 - SC ORDER] and also in the case of Cheminvest Limited [2015 (9) TMI 238 - DELHI HIGH COURT] Backed by the aforesaid judicial pronouncements, it was submitted by the Ld. AR that as per the settled position of law no disallowance u/s.14A in absence of any exempt income could have been made in the hands of the assessee. In the backdrop of the facts involved in the case before us read with the aforesaid settled position of law we find substance in the claim of the Ld. AR that now when the assessee company had not received any exempt dividend income during the year under consideration, therefore, no disallowance u/s.14A of the Act was warranted in its case. We, thus, in terms of our aforesaid observations vacate the disallowance made by the assessing officer and thus the ground of appeal no. 2 is allowed. Disallowance u/s 43B on account of professional tax - HELD THAT:- Neither the submission was made nor any arguments were uttered at the time of hearing. The ld. CIT(A) has already based on his finding dismissed this ground and the ld. AR has not placed anything contrary to record at the time of hearing we do not find any reason to deviate from the findings of the lower authorities and in terms of these fact the third ground raised by the assessee is dismissed.