2020 (2) TMI 1438

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..... Sowmya Aacharya, Addl.CIT(DR)(ITAT), Bengaluru. ORDER Per N.V. Vasudevan, Vice President This appeal by the revenue is against the order dated 26.7.2019 of the CIT(Appeals)-I, Bengaluru relating to assessment year 2016-17. 2. The only issue that arises for consideration in this appeal is as to, whether the CIT(Appeals) was justified in deleting the disallowance of a sum of RS.2,95,61,114 mad....

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....icular income or receipt then A X B / C* 2,69,28,714 (iii) 1/2 % of the average of the value of investments,  income from which does not or shall not form part of the total income. 26,32,400   Disallowance as per Rule 8D 2,95,61,114 4. With regard to the contention of assessee that in absence of earning any dividend income, there can be no disallowance u/s. 14A, the AO referred....

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....ered the rival submissions. We are of the view that in the light of the decision Hon'ble Delhi High Court in the case of Cheminvest Ltd., 378 ITR 33 (Del) and in light of the admitted factual position that the assessee did not earn any exempt income during the relevant previous year, the disallowance of expenses u/s. 14A was rightly deleted by the CIT(Appeals). We may also add that the High Court ....