TMI Blog2021 (1) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... ot be any disallowance when there was no exempt income. In fact, the Revenue filed an appeal before the Apex Court in Chettinad Logistics Pvt. Ltd. The appeal filed by the Revenue was dismissed. In those circumstance, this Tribunal is of the considered opinion, the CIT(A) is not justified in observing that the judgment of Madras High Court in Redington India Ltd., was overruled by the Apex Court [ 2018 (7) TMI 567 - SC ORDER] There may be difference of opinion with regard to issues arises for consideration. Irrespective of the personal difference of opinion, the CIT(A) while deciding the appeal is bound to follow the judgment of the Apex Court and the jurisdictional High Court. Judicial discipline demand that all authorities in the Stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 119 of the Act, has clarified that Rule 8D read with Section 14A of the Act provides for disallowance of such expenditure even before a tax payer has not earned any exempt income? ii. Whether the Appellate Tribunal is correct in law in dismissing the appeal of the Revenue on the ground that the investment made by the assessee in group subsidiary company is on account of commercial expediency and expenditure attributable to such investment does not attract the provisions of Section 14A of the IT Act read with Rule 8D wheras Rule 8D as contained in the Income Tax Rules, 1962 does not provide for any such exclusion for the purpose of computing disallowance under Section 14A of the Income Tax Act, 1961? and iii. Whether the Appellat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... do away with the pernicious practice adopted by the Assessees', to claim expenditure, against income exempt from tax, introduced the said provision. 10. In the instant case, there is no dispute that no income i.e., dividend, which did not form part of total income of the Assessee was earned in the relevant assessment year. 10.1. Therefore, to our minds, the addition made by the Assessing Officer by relying upon Section 14 A of the Act, was completely contrary to the provisions of the said Section. ...... 15. However, it is, our view, as indicated above, independent of the reasoning given in M/s.Redington (India) Limited case that Rule 8D cannot be read in a manner, which takes it beyond the scope and content of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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