TMI Blog2017 (10) TMI 1637X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowed whether or not any income was generated - HELD THAT:- As in view of the decision of Cheminvest Ltd. [ 2015 (9) TMI 238 - DELHI HIGH COURT] and on the face of the factual position that there is no dispute as to the assessee not deriving any exempt income, we are of the considered opinion that the disallowance is not permissible where no exempt income is received or receivable during th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regarding the submissions and explanations of the appellant company which is highly arbitrary, unjustified, uncalled for and bad in law. 2. The Ld.CIT(A) has erred in law and facts of the case in confirming the action of Ld.AO in computing the disallowance amounting to Rs.2,56,169 and applying rule 8D of the Rules read with section 14A of the Act which is highly arbitrary, unjustified, basel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is appeal challenging the order of the Ld.CIT(A) sustaining the addition of Rs.2,56,169/-. 4. At the outset, argument of the Ld.AR is that the authorities below erred in making and sustaining the addition of Rs.2,56,169/- by invoking the provisions u/s 14A of the Act, on the face of the submission of the assessee that in the year under consideration, the assessee did not derive any exempt incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lacing reliance on Special Bench decision dated 05.05.2009 of this Tribunal in the case of Cheminvest Ltd. vs ITO 317 ITR 86 wherein it was held that expenditure was allowable to the assessee without any requirement of earning or receipt of income. On that analogy, the AO hold that the expenditure shall be disallowed whether or not any income was generated. However, in view of the decision of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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