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TMI Blog2018 (5) TMI 1935X X X X Extracts X X X X X X X X Extracts X X X X ..... any reason to interfere with the order of the lower authority and accordingly the same is confirmed. Disallowance u/s 14A - HELD THAT:- The Madras High Court in the case of Redington (India) Ltd. v. Addl. CIT [2017 (1) TMI 318 - MADRAS HIGH COURT ] observed that tax cannot be levied in vacuum. In case no income was earned, there cannot be any disallowance under Section 14A of the Act. Therefore, the CIT(Appeals) restricted the disallowance to the income earned by the assessee. In view of the judgment of Madras High Court in Redington (India) Ltd. (sura), this Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed. Disallowance of Reserve Fund under Section 45-IC of the Reser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he same is confirmed. X X X X Extracts X X X X X X X X Extracts X X X X ..... y applying the procedure provided in Rule 8D(2). According to the Ld. D.R., merely because there was no exempted income, it does not mean that the expenditure incurred by the assessee is for business purpose. According to the Ld. D.R., Section 37 of the Act specifically provides for allowance of expenditure relatable to business profit, which is a taxable one. In respect of expenditure for earning the exempted income, according to the Ld. D.R., whether the assessee earns the income or not, the same has to be disallowed even before introduction of Section 14A and Rule 8D(2). According to the Ld. D.R., the Parliament by way of Section 14A of the Act has made it clear that the expenditure incurred with an intention to earn exempted income cann ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T.A. No.454/Mds/2016 dated 24.08.2016, found that transfer of funds as required under Section 45-IC of the Reserve Bank of India Act is only application of income, therefore, it is liable for taxation. In view of the above, this Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed 11. The next issue arises for consideration is levy of interest under Section 234D of the Act. 12. Shri R. Sivaraman, the Ld.counsel for the assessee, submitted that this issue was decided by this Tribunal against the assessee in I.T.A. No.2407/Mds/2016. We have carefully gone through the order of this Tribunal in I.T.A. No.2407/Mds/2016. The Tribunal found that the interest was charged on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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