M/S. REGENT AUTOMOBILES LTD.,NEW DELHI vs. ADDL. CIT, NEW DELHI

At the time of hearing before us, nobody appeared on behalf of the assessee-appellant. This appeal of the assessee is, therefore, being decided ex-parte qua the assessee-appellant on merits after hearing the arguments of learned Senior DR.

The only ground raised by the assessee in this appeal reads as under:-

We have heard the arguments of learned DR and perused the material placed before us. From a perusal of the assessment order, it is clear that no dividend income was earned by the assessee during the previous year. We find this issue to be covered in favour of the assessee by the decision of Hon'ble Jurisdictional High Court in the case of Cheminvest Limited Vs. CIT-VI in order dated 2nd September, 2015 and CIT-IV Vs. Holcim India P.Ltd. in ITA No.486/2014 & 299/2014, order dated 5th September, 2014, wherein Hon'ble Jurisdictional High Court has held that if there is no exempt income, then no disallowance u/s 14A of the Act can be made. Admittedly, in the case of the assessee, there is no exempt income. Therefore, respectfully following the above decisions of Hon'ble Jurisdictional High Court, we delete the disallowance of `41,40,240/- made by the Assessing Officer and sustained by learned CIT(A) u/s 14A of the Act. The ground raised by the assessee is thus allowed.

In the result, the appeal of the assessee is allowed. Decision pronounced in the open Court on 26.05.2016.