TMI Blog2018 (9) TMI 1756X X X X Extracts X X X X X X X X Extracts X X X X ..... s required to be made u/s 14A in case of not earning the dividend income. This Tribunal has followed the decision of Hon’ble Madras High Court in the case of Redington India Private Limited Vs. ACIT [2017 (1) TMI 318 - MADRAS HIGH COURT]. - Decided in favour of assessee. - I.T.A. No. 329/Viz/2018 - - - Dated:- 26-9-2018 - SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER For The Appellant : Shri G.V.N.Hari, AR For The Respondent : Shri K.C.Das, DR ORDER PER D. S. SUNDER SINGH, Accountant Member: This appeal is filed by the assessee against the order of the Commissioner of Income-Tax (Appeals)[CIT(A)]-10, Hyderabad vide I. T. A. No. 0175/CIT(A)-10/2017-18/CIT(A), HYD-10/1015 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is no dispute with regard to the fact that the assessee did not earn the dividend income. This Tribunal considered had an occasion to consider the identical issue with regard to the disallowance required to be made u/s 14A r. w. Rule 8D in the absence of dividend income in the cited case and held that no disallowance is required to be made u/s 14A in case of not earning the dividend income. This Tribunal has followed the decision of Hon ble Madras High Court in the case of Redington India Private Limited Vs. ACIT [77 Taxmann. com 257]. For ready reference, we extract relevant part of the order of this Tribunal in the case of RINL dated 22. 11. 2017 (supra) which reads as under : 36. We have heard both the parties, perused the materials ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expenses incurred in relation to the exempt income which was claimed as deduction for the assessment year 2009-10. Hence, the assessee argued before the Ld. CIT that Section 14A is not applicable in assessee s case. As per the observation of the Ld. CIT, the assessee made the investments to the tune of ₹ 19, 90, 625/- in shares and bonds from the borrowed funds and the interest expenditure relating to the earning of dividend income is required to be disallowed u/s 14A. Though CIT opined that the expenditure relating to the earning of dividend income required to be disallowed, there was no finding given by the CIT in his order with regard to earning of dividend income. The CIT also did not rebut the explanation offered by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opinion that there is no case for revision of order u/s 263 and accordingly we set aside the orders of the CIT and allow the appeal of the assessee. 37. Respectfully following the view taken by this Tribunal in the order cited (supra), we set aside the orders of the lower authorities and allow the appeal of the assessee on this ground. 5. 1. Since the facts are identical, respectfully following the view taken by the Coordinate Bench, we hold that no disallowance is required to be made in the absence of dividend income. Accordingly we set aside the orders of the lower authorities and allow the appeal of the assessee. 6. In the result, appeal of the assessee is allowed. The above order was pronounced in the open court on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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