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Income Tax Appellate Tribunal, DELHI ‘E’ BENCH,
Before: SHRI N.K. BILLAIYA, & MS. SUCHITRA KAMBLE
PER N.K. BILLAIYA, ACCOUNTANT MEMBER:
This appeal by the Revenue is preferred against the order of the ld. CIT(A) – 7, New Delhi dated 05.10.2016 pertaining to A.Y 2013-14.
The solitary grievance of the Revenue is that the CIT(A) erred in deleting the disallowance of Rs. 4,45,79,607/- made u/s 14A of the Income-tax Act, 1961 [hereinafter referred to as 'the Act' for short] read with Rule 8D of the Income tax Rules, 1962.
We find that the Assessing Officer has himself given a categorical finding that during the subject assessment year, no exempt income was earned by the assessee. This admitted fact makes the impugned issue squarely in favour of the assessee and against the revenue by the decision of the Hon'ble Jurisdictional High Court decision of the Special Bench of the Tribunal in the case of M/s Cheminvest Ltd 121 ITD 318 which was affirmed by the Hon'ble High Court of Delhi. Same view is taken by the Hon'ble Gujarat High Court in the case of Corrtech Energy (P) Ltd 372 ITR 97. In view of the above, disallowance of Rs. 4,45,79,607/- is directed to be deleted. Accordingly, the Ground raised by the revenue is dismissed.
In the result, the appeal of the revenue in is dismissed.
The order is pronounced in the open court on 04.07.2019.