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TMI Blog2018 (9) TMI 1991X X X X Extracts X X X X X X X X Extracts X X X X ..... 4) TMI 298 - MADRAS HIGH COURT ] categorically found that there cannot be any disallowance when the assessee has not earned any exempted income. Therefore, this Tribunal is of the considered opinion that the CIT(Appeals) has rightly placed his reliance on the order of this Tribunal in Royala Corporation Ltd.[ 2016 (1) TMI 239 - ITAT CHENNAI ]. The only contention of the Ld. D.R. before this Tribunal is that an appeal is pending before the High Court. It is nobody s case that the High Court has stayed operation of the order of this Tribunal in M/s Royala Corporation Ltd. (supra). Mere pending of appeal before the High Court cannot be a reason to take a different view by this Tribunal. Therefore, this Tribunal do not find any reason to interf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ady filed before the High Court against the order of this Tribunal in M/s Royala Corporation (supra). Moreover, according to the Ld. D.R., Rule 8D(2) of the Income-tax Rules, 1962 does not say that the disallowance has to be restricted to earning of exempted income. According to the Ld. D.R., irrespective of the fact whether the assessee earned dividend income or not, the disallowance has to be computed as provided in Rule 8D(2). Section 14A of the Income-tax Act, 1961 (in short 'the Act') read with Rule 8D(2) does not in anywhere say that it is a pre-condition to earn dividend income or exempted income for making disallowance. Therefore, according to the Ld. D.R., the CIT(Appeals) is not correct in directing the Assessing Officer t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. D.R. before this Tribunal is that an appeal is pending before the High Court. It is nobody's case that the High Court has stayed operation of the order of this Tribunal in M/s Royala Corporation Ltd. (supra). Mere pending of appeal before the High Court cannot be a reason to take a different view by this Tribunal. Therefore, this Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed. 6. Now coming to I.T.A. No.594/Chny/2018 in the case of PVP Global Ventures Pvt. Ltd. 7. In this case, admittedly, the assessee has not earned any exempted income. Therefore, the judgments of Madras High Court in Redington (India) Ltd. (supra) and Chettinad Logistics Pvt. Ltd. (supra) are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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