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TMI Blog2018 (9) TMI 599X X X X Extracts X X X X X X X X Extracts X X X X ..... receipt of income which was not includible in the total income during the relevant previous year for the purpose of disallowing any expenditure in relation to the said income. Provisions of section 14A cannot be invoked as there is no exempt income in the hands of the assessee. Accordingly, we find no infirmity in the order of the CIT(Appeals) who has rightly deleted the addition. - Decided in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of revenue's appeal before the Hon'ble High Court of Karnataka against the decision of Jurisdictional ITAT in the case of M/s Ambuthirtha Power Pvt. Ltd in ITA No.243/2016, dated: 07.07.2017 and an SLP before the Hon'ble Apex Court against the decision of Hon'ble High Court of Delhi in the case of M/s Cheminvest Ltd (378 ITR 33 (Del)). 3. For these and such other grounds th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earn any exempt income, no disallowance could be made u/s. 14A of the Act. The Hon'ble Delhi High Court in the case of Cheminvest Ltd. v. CIT, 378 ITR 33 (Del) has categorically held that section 14A envisages that there should be actual receipt of income which was not includible in the total income during the relevant previous year for the purpose of disallowing any expenditure in relation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this court in Maxopp Investment Ltd. (supra) and to the decision of the Special Bench of the Income-tax Appellate Tribunal in this very case, i.e., Cheminvest Ltd. v. CIT [2009] 317 ITR (AT) 86 (Delhi) [SB]. The court also referred to three decisions of different High Courts which have decided the issue against Revenue. The first was the decision in CIT v. Lakhani Marketing Incl. (decision dated A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d out for disallowance. 5. In the light of the aforesaid judgment, the provisions of section 14A cannot be invoked as there is no exempt income in the hands of the assessee. Accordingly, we find no infirmity in the order of the CIT(Appeals) who has rightly deleted the addition. 6. In the result, appeals of the Revenue are dismissed. Order pronounced in the open court on 7th Sept, 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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