TMI Blog2021 (9) TMI 1037X X X X Extracts X X X X X X X X Extracts X X X X ..... come during the year. No disallowance under Section 14A of I.T. Act is attracted if the assessee has not earned any exempt income during the year. Respectfully following the aforesaid orders of Hon ble Delhi High Court in the cases of CIT vs. Holcim India Pvt. Ltd. [ 2014 (9) TMI 434 - DELHI HIGH COURT] and Cheminvest Ltd. Vs. ACIT [ 2014 (9) TMI 434 - DELHI HIGH COURT] we set aside the order of the Ld. CIT(A) and direct the Assessing Officer to delete the aforesaid disallowance - Decided in favour of assessee. - ITA No. 5261/Del/2018 - - - Dated:- 23-9-2021 - SHRI AMIT SHUKLA , JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA , ACCOUNTANT MEMBER Assessee By : None Revenue By : Shri Avikal Manu, Sr. DR ORDER Per A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I.T Rules , for short). The assessee submitted his reply on 05.12.2016, relevant portion of which is reproduced as under: 3.2 The assessee submitted his reply on 05.12.2016 relevant para of which are reproduced as under: with reference to your query to give the working of expenses as per sec. 14A of the Income Tax Act we would like to draw you kind attention that section 14A of the Income Tax Deals with the expenditure incurred in relation to income not including in total income. However, during the year under assessment assessee has not earned any income which has been claimed as exempt and as such there is not such expenses incurred on earning exempt income. Further we would like to draw you kind attention that the investment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, the assessee filed appeal before the Ld. CIT(A). In the appellate proceedings before the Ld. CIT(A), vide written submissions dated 19.03.2018, the assessee once again contended that no disallowance can be made under Section 14A of I.T. Act as the assessee had not earned any dividend income / exempt income. The relevant portion of the written submission is reproduced as under: 3.2 In this regard we would like to draw you kind attention to computation of income for AY 2014-15 (the copy of computation of income is enclosed and forms part of paper book at (page no 7 to 8) as per which the assessee has not earned any dividend or exempt income. As the assessee has not earned any dividend income / exempt income and as such no disallowanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. CIT(A) respectively. (D) We have heard Ld. Sr. DR. We have carefully perused the materials available on record. We find that the assessee specifically contended before the Assessing Officer that the assessee had not earned any income claimed as exempt. This contention was once again raised by the assessee before the Ld. CIT(A). Neither the Assessing Office nor the Ld. CIT(A) has disputed the claim of the assessee that no exempt income was earned by the assessee during the relevant previous year corresponding to Assessment Year 2014-15, to which this present appeal pertains. On perusal of the materials on record, we find nothing contrary to claim of the assessee that the assessee had not earned any exempt income during the year. It ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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