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2018 (4) TMI 1972 - ITAT DELHIDisallowance u/s 14A - assessee has earned exempt income or not? - HELD THAT:- We find that the assessee has not earned any dividend income during the year. As the assessee has not earned income which is exempt from tax during the year, no disallowance can be made u/s 14A as held by the Hon’ble Jurisdictional High Court in the case of Cheminvest Ltd. [2015 (9) TMI 238 - DELHI HIGH COURT] Therefore, Ground No.1 is allowed. Nature of expenses - expenditure on amortization of leasehold land - revenue or capital expenditure - HELD THAT:- Assessee issue is covered by the decision of assessee’s own case [2017 (8) TMI 77 - ITAT DELHI] wherein the issue has been set aside to the file of the AO for denovo adjudication as there is no material on record to show that assessee has made these payments as advance rent for future years to secure any reduction in rent payable for future years or for any other business consideration. We are, therefore, unable to appreciate arguments advanced by Ld. Counsel that these advances paid are towards advance rent. Even from the terms of agreements, it is not clear as to whether advances paid has been adjusted against future rent or whether these are in the nature of security deposits which are refundable in nature on termination of agreements. Both parties before us have expressed their intention regarding issue being re-adjudicated by assessing officer de novo. Ground allowed for statistical purposes.
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