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2019 (2) TMI 731 - BOMBAY HIGH COURTDisallowance u/s 14A - assessee's income exempt from tax is not NIL but has earned exempt income - Held that:- In the present case, Counsel for the Revenue however, points out that this is not a case where the assessee had earned no income which was exempt from tax. However, in our opinion, the ratio of the above noted decisions in the cases of Cheminvest Ltd [2015 (9) TMI 238 - DELHI HIGH COURT] and Holcim India (P) Ltd. [2014 (9) TMI 434 - DELHI HIGH COURT] would include a facet where the assessee's income exempt from tax is not NIL but has earned exempt income which is larger than the expenditure incurred by the assessee in order to earn such income. In such a situation that disallowance cannot exceed the exempt income so earned by the assessee during the year under consideration. No error in the view of the Tribunal. We record that the assessee had offered voluntary disallowance of expenditure of ₹ 1.30 crores, which is not been disturbed by the Tribunal. - Decided against revenue.
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