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Income Tax Appellate Tribunal, DELHI BENCH “A”, NEW DELHI
Before: SHRI J. SUDHAKAR REDDY & SHRI A.T. VARKEY
Appellant by : Shri Somil Aggarwal, Advocate Respondent by : Sh. Manoj K Chopra, Sr. DR ORDER
Both these appeals are filed by the assessee. The sole issue that arises for our adjudication is whether the disallowance made u/s 14A of the Income Tax Act 1961 (the Act) has been rightly sustained by the Ld.CIT(Appeals). The assessee has not pressed the grounds taken on reopening.
Heard Shri Somil Aggarwal, the Ld.Counsel for the assessee and Shri Manoj K Chopra, Ld.Sr.D.R. on behalf of the Revenue.
The undisputed facts in both these cases, is that the assessee has not earned any income by way of dividend during these two Assessment Years. Under these circumstances no disallowance can be made u/s 14A of the Act as held by the Hon’ble Delhi High Court in ITA 749/2014 in the case of Cheminvest Ltd. vs. CIT vide order dt. 2.9.2015 and the decision of the Hon’ble Delhi High Court in the case of CIT vs. Holcim India Pvt. Ltd. in ITA 486/2014 and ITA 299/2014 vide order dt. 5th September, 2014. Respectfully following the binding decisions of the Jurisdictional High Court, we allow the grounds of appeal raised in both the A.Ys 2000-2001 and 2004-05.
In the result both the appeals of the assessee are allowed in part.
Order pronounced in the Open Court on 04th December,2015.