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TMI Blog2016 (10) TMI 1014X X X X Extracts X X X X X X X X Extracts X X X X ..... extent of disallowing expenditure incurred by the assessee in relation to the tax exempt income. This proportion or portion of the tax exempt income surely cannot swallow the entire amount of tax exempt income. The Hon’ble Delhi High Court in the case of “M/s Cheminvest Ltd. vs. CIT” (2015 (9) TMI 238 - DELHI HIGH COURT) wherein also the assessee had made strategic investments in subsidiaries/Group Companies for retaining control over them but has not received any dividend income from such investments, has held that section 14A will not apply if no exempt income is received or receivable during the relevant previous year and that the expression ‘does not form part of the total income’, in section 14A of the Act envisages that there should b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me Tax Rules and accordingly added a sum of ₹ 1,93,69,565/- into the income of the assessee on account of disallowance of expenditure in relation to earning of tax exempt income. 3. In appeal, the Ld. CIT(A), however, deleted the disallowance so made by the AO relying upon various decisions of the higher authorities and observing that since the assessee had not earned any exempt income from the strategic investments made in group companies, hence, no disallowance was attracted in this case under section 14A. Being aggrieved by the above order, the Revenue has come in appeal before us. 4. We have heard the rival contentions and have also gone through the records. We find that the case of the assessee is squarely covered by the decisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Hon'ble Allahabad High Court in the case of "CIT Kanpur vs. M/s. Shivam Motors Pvt. Ltd." in ITA No.88 of 2014 vide order dated 05.05.2014; by the Hon'ble Gujarat High Court in the case of "CIT vs. Corrtecth Energy Pvt. Ltd." in ITA No.239 of 2014 vide order dated 24.03.2014 and by the Hon'ble Bombay High Court in the case of "CIT vs. M/s. Delite Enterprises" in ITA No.110 of 2009 vide order dated 26.02.09. 5. The Ld. DR has not pointed out any contrary decision to the above proposition. 6. In view of the overall facts and circumstances of the case, as discussed above, and in the light of the above decisions of the higher courts, which are otherwise binding on this Tribunal, we are of the view that no disallowance under section 14A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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