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2018 (8) TMI 1488 - ITAT MUMBAIDisallowance made u/s 14A r.w.r. 8D - Held that:- As per the settled principle of law as it stands now, in absence of any exempt income earned in a particular assessment year, no disallowance u/s.14A can be made. Therefore, only because the assessee itself has made some disallowance under section.14A of the Act, it cannot be utilized to his detriment as there is no estoppel against law. Thus we direct the Assessing Officer to examine assessee’s claim that in the relevant previous year, it has not earned any exempt income. In case the aforesaid claim of the assessee is found to be correct; no disallowance under section 14A can be made. TDS u/s 194J - Disallowance u/s.40(a)(ia) - payment was made by the assessee towards terminal charges for accessing online information and data base of Bloomberg Data Services Pvt. Ltd - Held that:- The payment made by the assessee not being in the nature of fee for technical services as per the provision of the 194J of the Act, it does not require deduction of tax at source. Therefore, we delete the disallowance made by the Assessing Officer and sustained by the Commissioner (Appeals). Levy of interest under section. 234C - Held that:- Levy of interest under section 234C of the ACT has to be made on the basis of income returned by the assessee. Moreover, there is no clarity on what basis the Assessing Officer has charged interest under section 234C as there is huge difference between the computation of interest under section 234C of the assessee and the Assessing Officer. Therefore, we are inclined to restore this issue to the Assessing Officer for verifying assessee’s claim after due opportunity of being heard. This ground is allowed for statistical purposes.
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