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Income Tax Appellate Tribunal, DELHI BENCHES : SMC : NEW DELHI
Before: SHRI R.S. SYAL
Date of Hearing : 24.07.2018 Date of Pronouncement : 25.07.2018 ORDER This appeal filed by the assessee arises out of the order passed by the CIT(A) on 18.01.2018 in relation to the assessment year 2013-14.
The Assessing Officer has made a disallowance of Rs.37,019/- by invoking the provisions of Rule 8D read with section 14A which has been upheld by the ld.CIT(A). The assessee is in appeal against such confirmation of addition.
Having heard both the sides and perused the relevant material on record, it is observed from the assessment order that no exempt income was earned by the assessee during the year. The Hon’ble jurisdictional High Court in Cheminvest Ltd. vs. CIT (2015) 378 ITR 33 (Del) and CIT vs. Holcim India P. Ltd. (2014) 90CCH 081-Del-HC has held that if there is no exempt income, there can be no question of making any disallowance u/s 14A. In view of these precedents, which are squarely applicable to the facts of the instant case, I hold that the ld. CIT(A) was not justified in confirming the disallowance. We, therefore, order to delete the addition.
In the result, the appeal is allowed.
The decision was pronounced in the open court on 25th July, 2018.