2020 (12) TMI 1409

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....alled twice. None appears at the assessee's behest. We accordingly dispose of this appeal ex parte after hearing the learned CIT-DR. 2. The Revenue's sole substantive grievance canvassed in the instant lis seeks to reverse the CIT(A)'s appellate action deleting sec. 14A r.w.s. Rule 8D disallowance of Rs.1,56,07,230/- made in the assessment dated 28.03.2015 framed u/s 143(3) of the Act. Learned CIT-DR invited our attention to the CIT(A)'s detailed discussion to this effect reading as under:- "4. Ground Nos. 1 to 5 These grounds are interlinked and directed against the action of the AO in making a disallowance of Rs.15,60,72,830/- u/s 14A r.w. Rule 80. The AO observed that the assessee itself had suo moto disallowed an amount of Rs.31 ,....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... exempt income has been earned or received by the assessee. Section 14A of Income Tax Act, 1961 does not apply to shares bought for strategic purposes". Similarly, Hon'ble Delhi High court in the case of CIT vs. M/s Holcim India Private Ltd. held that "Expenditure could not be disallowed u/s 14A of the Act in absence of any exempt income earned during the year." Hon'ble Allahabad High court in the case of CIT vs. M/s Shivam Motors (P) Ltd. held that "Hence in absence of any Tax free income, the corresponding expenditure could not be worked out for disallowance". The Hon'ble Tribunal Chennai Bench, in the case of ACIT Vs N. Bhaskaran in ITA NO.1717/MDS/2013 has categorically held that the CBDT Circular No.5/2014 dt. 11.2.14 is no....