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2022 (9) TMI 1238 - AT - Income TaxDisallowance u/s 14A read with 8D - absence of any exempt income - HELD THAT:- Going by the language employed in section 14A of the Act, the possession which emerges is that whether the assessee has not earned any exempt income, there cannot be “disallowance’ of the expenditure as it would resulting imposing tax on hypothetical income which is wholly impermissible in law, in view of the decision rendered by various High Courts as well as Tribunal. As noted that while deciding the issue, CIT(A) relied on the judgement in the case of CIT vs Oil Industry Development Board [2019 (3) TMI 1571 - SC ORDER] filed by the revenue against the judgement of Hon’ble Delhi High Court [2018 (2) TMI 1861 - DELHI HIGH COURT] by relying upon the decision in the case of CIT vs Essar Teleholdings Limited [2018 (2) TMI 115 - SUPREME COURT] - The Hon’ble Delhi High Court had rules that, in absence of any exempt income, disallowance u/s 14A of the Act of any amount was not permissible. In arriving at this conclusion, the Hon’ble Delhi High Court had relied upon its earlier decision in the case of Cheminvest Ltd. [2015 (9) TMI 238 - DELHI HIGH COURT]. The above proposition of law has been well accepted by various courts and as such we do not want to interfere in the order passed by the CIT(a) and following the decision of Co-ordinate Bench in the case of ACIT vs K. Raheja Corporate Services Pvt. Ltd. [2022 (7) TMI 1044 - ITAT MUMBAI]. Appeal of the revenue is dismissed.
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