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2017 (7) TMI 356 - ITAT CHANDIGARHDisallowance u/s 14A r.w. rule 8D - appellant company neither received nor claimed any dividend income in its return which is exempt u/s 10(34) - Held that:- The undisputed fact in this case is that the assessee had shown investment of ₹ 5,65,00,000/- in non-current investment. It is also not disputed that no dividend income was earned on the same during the year. The Jurisdictional High Court in the case of CIT Vs. Lakhani Marketing (2014 (7) TMI 44 - PUNJAB AND HARYANA HIGH COURT ) has held that no disallowance u/s 14A is warranted in the absence of exempt income. Thus in the facts and circumstances of the present case and the legal precedence on the issue, no disallowance u/s 14A is warranted since the assessee has not earned any exempt income during the year. The order of the Ld. CIT(A) is, therefore, set aside and appeal of the assessee stands allowed.
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