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Income Tax Appellate Tribunal, D Bench, Mumbai
Before: Shri R.C. Sharma & Shri Ram Lal Negi
This appeal has been filed by the assessee against the order of the CIT(A)-20, Mumbai dated 02.12.2016 for A.Y. 2012-13 in the matter of order passed under Section 143(3) of the Income Tax Act, 1961 (hereinafter “the Act”).
In this appeal assessee is aggrieved for the disallowance made under Section 14A of the Act r.w. Rule 8D of I.T. Rules.
We have heard the rival contentions and found that the disallowance has been made under Section 14A of the Act without considering the fact that the assessee is having no exempt income during the year under consideration. In view of the decision of the Hon'ble Delhi High Court in the case of M/s. Cheminvest Ltd. in of 2014 dated 02.09.2015, no disallowance under Section 14A is to be made when there is no exempt income. Accordingly we restore the matter back to the file of the AO to verify assessee’s claim that no exempt income has been earned during the M/s. Majestic Infracon P. Ltd. year and to decide the same in terms of the decision of the Hon'ble Delhi High Court in the case of Cheminvest Ltd. (supra).
In the result, the appeal filed by the assessee is allowed for statistical purposes.