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2018 (2) TMI 252 - AT - Income TaxDisallowance under section 14A - Held that:- The legal position is fairly well settled that in the absence of any tax exempt income, disallowance under Section 14A cannot be made. Hon’ble jurisdictional High Court in the case of Corrtech Energy (P.) Ltd. (2014 (3) TMI 856 - GUJARAT HIGH COURT) has upheld this approach. In the case of Ambalal Sarabhai Enterprises Ltd. (2017 (3) TMI 1526 - GUJARAT HIGH COURT), the Hon’ble jurisdictional High Court has once again upheld this proposition and observed that “it cannot be said that the learned Tribunal has committed any error in deleting the addition made by the Assessing Officer on disallowance under Section 14A of the Act”, in a situation in which the assessee did not have any tax exempt income. In view of these discussions, as also bearing in mind entirety of the case, we uphold the grievance of the assessee and direct the Assessing Officer to delete the impugned disallowance - Decided in favour of assessee.
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