TMI Blog2018 (11) TMI 1844X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the year under consideration, then no disallowance under Section 14A r.w. Rule 8D can be made. In similar factual circumstances as in the case on hand, where the assessee had not earned exempt income in the year under consideration. no disallowance could be made under Section 14A r.w. Rule 8D where the assessee had not earned exempt income in the year under consideration. Also see M/S. CHETTINAD LOGISTICS PVT. LTD. [ 2017 (4) TMI 298 - MADRAS HIGH COURT] - Decided in favour of assessee. - I.T. A. No.2102/Bang/2018 - - - Dated:- 27-11-2018 - SHRI N.V. VASUDEVAN AND SHRI JASON P BOAZ, JJ. Appellant By : Shri Seetharaman, C.A. Respondent By : Shri C.H. Sundar Rao, CIT (D.R) ORDER Shri Jason P Boaz, J. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. He also failed to appreciate that the borrowals and other expenses were used for business purposes and not for investments and that, therefore, the expenses incurred were not related to investments / tax-free income. 5. The appellant submits that, I any case, the addition made is excessive and unreasonable. 6. The appellant, therefore, prays that the disallowance of ₹ 6,11,21,496/- may be deleted. 4. Ground 1 5 being general in nature, no adjudication is called for thereon. 5.0 Ground Nos.2 6 - Disallowance u/s.14A r.w. Rule 8D. 5.1 At the outset, the learned Authorised Representative for the assessee submitted that in Ground Nos.2 6 (supra), the assessee contends that since it had earned no exempt income in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the decision of the Hon'ble High Court of Delhi in the case of Cheminvest Ltd. Vs. CIT (supra), wherein at para 23 thereof, the Hon'ble Court has held that when no exempt income is earned in the year under consideration, then no disallowance under Section 14A r.w. Rule 8D can be made. Para 23 of the judgment reads as under :- 23. In the context of the facts enumerated herein before the Court answers the question framed by holding that the expression does not form part of total income in Section 14A of the Act envisages that there should be an actual receipt of income which is not includible in the total income, during the relevant previous year for the purpose of disallowing any expenditure incurred in relation to the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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