2017 (4) TMI 1557

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.... has been filed by the assessee against impugned order dated 08.9.2016, passed by the ld. CIT (Appeals) Ghaziabad for the quantum of assessment passed u/s 143(3) for the A.Y. 2012-13. The assessee has taken following grounds:- "1.Because the Ld. CIT(A) has erred on facts and in law in confirming the action of the AO assuming jurisdiction in order to make disallowance under section 14A rea....

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....s has been brought on records that any borrowed on which interest has been paid has been applied for investment. On this ground also the disallowance confirmed by Ld. CIT (A) is wrong and bad in law. 5. Because considering the factual position that the appellant is NBFC and in view of the legal position the disallowance under section 14A made by the Assessing Officer and confirmed by Ld. ....

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....rn of income, hence there is no question of making any disallowance u/s 14A. The assessee's detailed submission in this regard before the Learned CIT (Appeals) has been incorporated at pages 2 to 11 of the appellate order. However, the Learned CIT (Appeals) held that even if there is no dividend income earned by the assessee but fact remains that assessee has made investment in shares; this itself....

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....aimed by the assessee, then the ratio laid down by the Hon'ble Jurisdictional High Court in Cheminvest Ltd. vs. CIT (Supra) that if the assessee has not earned any exempt income or when there is no actual receipt of any income which does not form part of the total income, no disallowance u/s 14A can be made, is clearly applicable here. We therefore, respectfully following the said principle l....