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2021 (8) TMI 934 - AT - Income TaxAddition u/s 14A - HELD THAT:- CIT(A) applied the law laid down by the Hon’ble jurisdictional High Court in the cases of CIT vs. Holcim India Private Limited [2014 (9) TMI 434 - DELHI HIGH COURT] and Cheminvest Ltd vs. CIT [2015 (9) TMI 238 - DELHI HIGH COURT] wherein it has been held that no disallowance u/s 14 A of the Act can be made in a year in which no exempt income was earned are received by the assessee. There is no dispute as to the fact that in this particular assessment year the assessee did not earn or receive any dividend income. Ld. CIT(A) has rightly applied the law laid down by the Hon’ble jurisdictional High Court to the facts of the case and deleted the addition made under section 14A of the Act read with Rule 8D of the Rules. We, therefore, do not find any ground to interfere with such findings and consequently confirm the same. Ground No. 1 of the Revenue’s appeal is accordingly dismissed. Addition u/s 36(1) and (2) - loan balance due from Carrier Launcher Education Foundation (CLEF) was written off - HELD THAT:- Since the assessee had declared the amount in question as income in the earlier assessment years and paid in taxes thereon, Ld. CIT(A) held that the conditions required u/s 36(1)(vii) read with section 36 (2) of the Act. It is not the case of the Revenue that in the earlier assessment years the assessee did not declare the impugned amount as income. It goes unchallenged that the assessee declared this amount as income in earlier assessment years and also paid the taxes. In view of the decision of the Hon’ble Supreme Court in the case of TRS Ltd vs. CIT [2010 (2) TMI 211 - SUPREME COURT]7, it is not necessary for the assessee to establish that the debt, in fact, has become irrecoverable; and that,it is enough if the debt is written off as irrecoverable in the accounts of the assessee. There is no doubt that the conditions u/s 36(1)(vii) read with section 36 (2) of the Act are satisfied. The deletion of this addition by the Ld. CIT(A), therefore, does not suffer any illegality or irregularity. We, therefore, confirmed the same and dismiss the other ground of the appeal of the Revenue.
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