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TMI Blog2019 (6) TMI 666X X X X Extracts X X X X X X X X Extracts X X X X ..... /2016 - - - Dated:- 12-6-2019 - Sh. R. K. Panda, Accountant Member And Sh. Kuldip Singh, Judicial Member For the Appellant : Ms. Paramita M. Biswas, CIT DR For the Respondent : Sh. Sushil Kumar Gupta, CA ORDER PER R.K. PANDA, AM: This appeal filed by the revenue is directed against the order dated 02.05.2016 of the CIT(A)-18, New Delhi relating to A. Y. 2012-13. 2. The only effective ground raised by the revenue reads as under :- 1. The Ld. CIT(A) has erred in deleting the addition of ₹ 4,65,04,000/- made by the AO on account of 14Aof the Act. 3. Facts of the case, in brief, ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the AR, I find that in the recent decision of Cheminvest Ltd of Hon ble Delhi High Court in [ 2015 ] 61 taxmann.com 118 (Delhi) , the question of law before the Hon ble HC was: Whether disallowance under section 14 A of the act can be made in a year in which no exempt income has been earned a received by the assessee? In answering the said question, the Hon ble High Court at para 23 of the order has held: In the context of the facts enumerated hereinbefore, the court answers the question by holding that the expression does not form part of the total income in section 14 A envisages that there should be an actual receipt of income, which is not includible in the total income, d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14A by rejecting the contentions raised by the assessee that no expenses have been incurred by the assessee to earn the exempt income during the year under assessment. CIT (A) observed that it cannot be ruled out that there is a proximate relationship between office establishment expenditure and interest expenditure to the investment resulting income not chargeable to tax. Ld. CIT (A) relied upon order passed by the Tribunal in case of Cheminvest Limited vs. ITO - 124 TTJ 577 (Del.)(SB) by holding that, if an expenditure is incurred in relation to income which does not form part of total income, it has to suffer disallowance irrespective of the fact whether any income is earned or not. However, this decision has been ov ..... X X X X Extracts X X X X X X X X Extracts X X X X
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