TMI Blog2020 (8) TMI 260X X X X Extracts X X X X X X X X Extracts X X X X ..... D HARYANA HIGH COURT] held that in the present case, admittedly, the assessee did not make any claim for exemption, in such situation section 14A could have no application. In the present case also it is an admitted position that the assessee had not claimed any exempt income, so there was no question of making disallowance under section 14A - Decided against revenue - ITA NO.1272/Chd/2019 - - - Dated:- 17-3-2020 - Shri. N.K. Saini, VP And Shri, Sanjay Garg, JM For the Assessee : Shri Harish Nayyar, C.A For the Revenue : Smt. C. Chandrakanta, CIT DR ORDER PER N.K. SAINI, VICE PRESIDENT This is an appeal by the Revenue against the order dt. 28/06/2019 of the Ld. CIT(A)-3, Ludhiana. 2. Following grounds ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee that there was no exempt income claimed during the year under consideration and made the disallowance of ₹ 51,60,82,316/- by invoking the provisions of Section 14A of the Act read with Rule 8D of the Income Tax Rules 1962. 5. Being aggrieved the assessee carried the matter to the Ld. CIT(A) and furnished the written submission which has been incorporated in para 4.1 of the impugned order, for the cost of repetition the same is not reproduced herein. 5.1 The Ld. CIT(A) after considering the submissions of the assessee deleted the disallowance made by the A.O. by observing in para 4.2 of the impugned order as under: 4. 2 I have gone through the facts of the case and written submissions filed by the appellant. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n on the issue, the disallowance made by AO under section 14A is unwarranted. The action of the AO is therefore set aside and disallowance of ₹ 51,60,82,316 made by the Assessing Officer in this regard is hereby deleted and Ground No 2 is allowed. 6. Now the Department is in appeal. 7. The Ld. CIT DR although supported the order of the A.O. but could not controvert this observation of the Ld. CIT(A) that no disallowance under section 14A of the Act is warranted in the absence of exempt income as per the ratio laid down by the Hon'ble Jurisdictional High Court in the case of CIT Vs. Lakhani Marketing (2014) (7) TMI 44 (P H). 8. The Ld. Counsel for the assessee in his rival submissions reiterated the submissions made bef ..... X X X X Extracts X X X X X X X X Extracts X X X X
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