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| The Tax Publishers2021 TaxPub(DT) 4514 (Del-Trib) : (2021) 090 ITR (Trib) 0020 INCOME TAX ACT 1961
Section 14A
Where AO could not bring any material to show that the assessee had received any dividend income during the year, CIT(A) was not justified in sustaining the disallowance made by AO under section 14A read with rule 8D when assessee had admittedly not received any dividend during the year.
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Disallowance under section 14A - Expenditure against exempt income - No dividend income received -
Assessee notwithstanding that section 14A was not attracted and there was no fresh investment, still made suo motu disallowance out of interest expenditure. AO Excluding the suo motu disallowance, made further disallowance which was also confirmed by CIT(A). Held: Assessee had not received any dividend income during the year. Revenue could not bring any material to show that the assessee had received any dividend income during the year. Thus, CIT(A) was not justified in sustaining the disallowance made by AO under section 14A read with rule 8D when the assessee had admittedly not received any dividend during the year.
Followed:Cheminvest Ltd. v. CIT (2015) 378 ITR 33 (Delhi) : 2015 TaxPub(DT) 3520 (Del-HC)
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : A.Ys. 2009-10 & 2010-11
INCOME TAX ACT 1961
Section 37(1)
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