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2018 (6) TMI 1379 - AT - Income TaxDisallowance u/s 14A - Held that:- The learned Departmental Representative could not controvert the submission of the assessee that it has not received any exempt income. In view of this, respectfully following the decision of Hon’ble Delhi High Court in Cheminvest Ltd. Vs. CIT [2015 (9) TMI 238 - DELHI HIGH COURT] as held that in absence of any exempt income no disallowance under section 14A can be made. - Decided in favour of assessee. Disallowance of interest expenditure - Held that:- As assessee has shown that assessee has made investment in the companies which are 100% subsidiary of the assessee company and therein the same line of business. It was also not shown before us that investment is made only for the purpose of earning dividend. In view of the decision in CIT Vs. Phil Creation [2011 (6) TMI 912 - BOMBAY HIGH COURT]. According to us, the issue is squarely covered in favour of the assessee. Disallowance of entertainment expenditure sustained @ 10% out of the total expenditure at 50% of Directors traveling expenses - non busniss purposes - Held that:- We have noted that this issue is squarely covered in favour of the assessee by the decision of the Co-ordinate Bench in assessee’s own case for assessment year 2007-08 [2010 (8) TMI 1108 - ITAT DELHI] wherein it has been held that when there is no specific expenses as pointed out by the Assessing Officer for non-business purposes, no disallowance can be made. - Decided in favour of assessee
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