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Income Tax Appellate Tribunal, DELHI BENCHES : F : NEW DELHI
Before: SHRI R.S. SYAL & SMT BEENA PILLAI
Date of Hearing : 21.11.2017 Date of Pronouncement : 22.11.2017 ORDER PER R.S. SYAL, VP: This appeal filed by the Revenue is directed against the order passed by the CIT(A) on 24.04.2015 in relation to the assessment year 2010-11.
The only issue raised in this appeal is against deletion of disallowance u/s 14A amounting to Rs.36,84,029/-.
Briefly stated, the facts of the case are that the Assessing Officer computed disallowance u/s 14A read with Rule 8D at Rs.36,84,029/- despite noticing on page 5 of the assessment order that the assessee did not earn any exempt income. The ld. CIT(A) deleted the addition by following certain judgments. The Revenue is aggrieved against such deletion of addition and is in appeal before us.
Having heard both the sides and perused the relevant material on record, we find that this issue is no more res integra in view of the judgment of the Hon'ble jurisdictional High Court in the case Cheminvest Ltd. vs. CIT (2015) 378 ITR 33 (Del), wherein it has been held that if there is no exempt income, there can be no question of making any disallowance u/s 14A. Similar view has been taken by the Hon'ble jurisdictional High Court in CIT vs. Holcim India P. Ltd. (2014)
90CCH 081-Del-HC. In view of these binding precedents providing for not making any disallowance u/s 14A in the absence of any exempt income, which are squarely applicable to the facts of the instant case, we uphold the view taken by the ld. CIT(A) on this issue.
In the result, the appeal is dismissed.
Order pronounced in the open court on 22nd November, 2017.