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Income Tax Appellate Tribunal, “C” BENCH : BANGALORE
O R D E R Per Shri A.K. Garodia, Accountant Member Both these appeals are filed by the revenue and these are directed against two separate orders of ld. CIT(A)-1, Bangalore both dated 22.11.2017 for Assessment Years 2002-03 and 2004-05. Both these appeals were heard together and are being disposed of by way of this common order for the sake of convenience.
The ld. DR of revenue supported the assessment orders whereas the ld. AR of assessee supported the orders of CIT(A). He further submitted that a categorical finding has been given by ld. CIT(A) in para no. 5 of both these orders that there is no exempt income during the relevant year. He submitted that as per the judgement of Hon’ble Delhi High Court rendered in the case of Cheminvest Pvt. Ltd. Vs. CIT as reported in (2015) 378 ITR 33(Delhi), it was held that no disallowance u/s. 14A can be made in a year in which no exempt income has been earned or received by the assessee.
& 854/Bang/2018 Page 2 of 2 3. We have considered the rival submissions and in view of this categorical finding of CIT(A) in both the years that no exempt income has been earned by assessee in any of these two years, disallowance made by the AO u/s. 14A of IT Act is not sustainable. We hold so by respectfully following the judgement of Hon’ble Delhi High Court rendered in the case of Cheminvest Pvt. Ltd. Vs. CIT (supra).
In the result, both the appeals filed by the revenue are dismissed. Order pronounced in the open court on the date mentioned on the caption page.