TMI Blog2019 (5) TMI 318X X X X Extracts X X X X X X X X Extracts X X X X ..... law declared by the Hon ble High Court cannot be overridden by the Circular of the CBDT, the addition made in this behalf is directed to be deleted. Therefore, the appeal of the assessee succeeds and stands allowed. - I.T.A. No. 2214/Kol/2018 - - - Dated:- 3-5-2019 - Shri A. T. Varkey, JM For the Appellant : Shri V. N. Purohit , Ld. CIT(A) And Shri H. V. Bhardwaj, Advocate For the Respondent : Shri Robin Choudhury, ACIT, Sr. DR ORDER This appeal filed by assessee is against the order of Ld. CIT(A) - 2, Kolkata dated 23.08.2018 for AY 2009-10. 2. Though the assessee has raised four grounds of appeal, at the time of hearing only presses ground no. 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o point out that the assessee had not received any dividend income, the Ld. AR took me through the audited financials of the company wherefrom it is noted that the assessee has not received any dividend income. The Ld. DR could not controvert this fact after perusal of the paper book. In such a scenario, as per the law laid by the Hon ble Delhi High Court in CIT Vs. Holcim India (P) Ltd. (2015) 57 taxmann.com 28 (Del.), wherein it was held that section 14A of the Act cannot be invoked when there is no exempt income earned in the relevant assessment year. Therefore, I find merit in the ground no. 3 of the assessee and is of the view that no disallowance u/s. 14A read with Rule 8D of the Rules was warranted since assessee has not earned any e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which is contrary to the statutory provisions has really no existence in law. In Lakhani Marketing Inc.'s case (supra), this Court while dismissing the appeal of the revenue had observed that unless and until there is receipt of exempted income for the concerned assessment years Section 14A of the Act cannot be invoked. Similarly, in Holcim India (P) Ltd. s case (supra), the Delhi High Court had laid down that Section 14A of the Act cannot be invoked when no exempt income was earned. Identical view was expressed by Madras High Court in Redington (India) Ltd.'s case (supra), where it was enunciated that no disallowance under Section 14A read with Rule 8(d) of the Income Tax Rules, 1962 (in short 1962 Rules ) can be made in respect o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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