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TMI Blog2021 (3) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee nor its authorized representative appeared before the Bench through video conferencing. As there is non-compliance by the assessee, we are proceeding to dispose off this appeal, after hearing the Ld. Departmental Representative (DR) and also examining the materials available on record. 2. The grounds of appeal filed by the Revenue read as under: i. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the disallowance u/s. 14A of the Act without considering the CBDT Circular No. 5 of 2014 dated 11.02.2014 wherein it was clearly stated that the legislative intention is to allow only that expenditure which is relatable to earning of income and it therefore follows that the expenses which a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ares, which did not yield any dividend in the year under consideration, the expenditure incurred for earning the income is deductible notwithstanding the fact that no such income has been earned? v. The appellant prays that the order of Ld. CIT(A) on the above grounds be setaside and that of the assessing officer be restored. 3. Briefly stated, the facts of the case are that the assessee filed its return of income for the assessment year (AY) 2016-17 on 08.10.2016 declaring total income at Rs. Nil. During the course of assessment proceedings, the Assessing Officer (AO) asked to assessee to furnish details of expenditure incurred or attributable for earning exempt income, in view of the provisions of section 14A r.w. Rule 8D of the Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onger res integra. In Pr. CIT v. Huntsman International (India) Pvt. Ltd. (ITA No. 1619 of 2016), the Hon'ble Bombay High Court vide order dated 30.01.2019 has held:- "5. This question relates to disallowance made by the Assessing Officer under Section 14A of the Income Tax Act, 1961 r/w Rule 8D of the Rules of the expenditure incurred by the assessee for earning exempt income. The Tribunal by the judgment which is impugned in this appeal held that the assessee had not earned any exempt income during the year under consideration. The Tribunal, therefore, followed the decision of Delhi High Court in case of CIT Vs. Holcim India (Pvt.) Ltd. (2014) 272 CTR 282. In such decision, the Delhi High Court ruled that when there is no exempt income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an always be taken on fair reading of Section 14A of the Said Act. A Division Bench of Allahabad High Court has also taken a similar view in the case of Commissioner of Income Tax V. Shivam Motors (P) Ltd. (supra). Hence, in our view, no fault can be found with the impugned judgment of the Appellate Tribunal whereby disallowance under Section 14A was ordered to be deleted. No substantial question of law arises. Appeal is, accordingly, dismissed." 6. Counsel for the assessee also brought to our notice the fact that the Supreme Court in case of CIT Vs. Chettinad Logistics (P) Ltd. has dismissed the Revenue's SLP against the judgment of the Delhi High Court in Holcim India (P) Ltd. (supra), taking a similar view." 6.1 Thus when there is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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