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2017 (8) TMI 478 - AT - Income TaxDisallowance u/s 14A - revision u/s 263 - Held that:- When the assessee has no exempt income, the question of disallowance u/s14A r.w.Rule 8D is not called for. The same view is expressed by the decision of Hon’ble Madras High Court in Redington (India) Ltd. Vs. Addl.CIT, [2017 (1) TMI 318 - MADRAS HIGH COURT], Hon’ble Delhi High Court in Chem Investments Vs. CIT, [2015 (9) TMI 238 - DELHI HIGH COURT] and Principal CIT Vs. Sintex Industries Ltd.,[2017 (5) TMI 1160 - GUJARAT HIGH COURT] held that no disallowance is called for when assessee makes small investment from the surplus funds. There was no dividend income earned by the assessee and the case was taken for revision to disallow the business loss claimed against the property income which was examined by the AO and dropped the assessment proceedings and the Ld. CIT also satisfied that there is no case for revision on account of incorrect set off of business loss. With regard to the issue of disallowance u/s 14A as per the judicial pronouncements no disallowance is called for when there is no exempt income. Therefore, we are of the considered opinion that there is no case for revision of order u/s 263 and accordingly we set aside the orders of the CIT and allow the appeal of the assessee.
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