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2020 (8) TMI 123 - AT - Income TaxDisallowance u/s 14A read with Rule 8D - D.R. referred to Board Circular on the proposition that even under such circumstances when no dividend income has earned, addition could be made under section 14A because the A.O. is bound by the mandatory provisions of Rule 14A read with Rule 8D(2) - CIT- A deleted the addition - HELD THAT:- Since it is an admitted fact that no dividend income is earned by assessee in assessment year under appeal which fact is clearly mentioned in the Orders of the authorities below, therefore, it is an undisputed fact that assessee company has not received any dividend income in assessment year under appeal. This issue has also been decided in case of Cheminvest Ltd.[2015 (9) TMI 238 - DELHI HIGH COURT] that “Section 14A will not apply if no exempt income is received or receivable during the relevant previous year.” The Ld. CIT(A) correctly followed the decision of Hon’ble Delhi High Court in the case of Cheminvest Ltd., (supra) and hence, no interference is required into the matter. The Departmental Appeals fails and is accordingly dismissed. - Decided against revenue.
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