TMI Blog2018 (2) TMI 252X X X X Extracts X X X X X X X X Extracts X X X X ..... GH COURT) has upheld this approach. In the case of Ambalal Sarabhai Enterprises Ltd. (2017 (3) TMI 1526 - GUJARAT HIGH COURT), the Hon’ble jurisdictional High Court has once again upheld this proposition and observed that “it cannot be said that the learned Tribunal has committed any error in deleting the addition made by the Assessing Officer on disallowance under Section 14A of the Act”, in a si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee are as follows:- 1. Ld.CIT (A) has erred in law and on facts in enhancing the disallowance under section 14A of the Income Tax Act, 1961 to the tune of ₹ 16,37,628/. 2. On the facts and in the circumstances of the case, the Ld. CIT (A) has erred in making addition of ₹ 16,37,628/- which is more than the exempt income claimed. There cannot be any disallowance under sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... offered to tax and accepted as business income for the reasons that the related shares, on which these dividends were earned, were held as stock in trade. The Assessing Officer has, however, made the impugned disallowance under Section 14A in respect of the expenses allegedly attributable to earning of dividend income. Learned Counsel submits that the issue as to whether a disallowance under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... low nevertheless. 4. The plea indeed is well taken. The legal position is fairly well settled that in the absence of any tax exempt income, disallowance under Section 14A cannot be made. Hon ble jurisdictional High Court in the case of Corrtech Energy (P.) Ltd. (supra) has upheld this approach. In the case of Ambalal Sarabhai Enterprises Ltd (supra), the Hon ble jurisdictional High Court has on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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