S. 14A/ Rule 8D: In the absence of any exempt income, disallowance u/s 14A & Rule 8D of the Act of any amount is not permissible (Essar Teleholdings 401 ITR 445 (SC) followed, Cheminvest 378 ITR 33 (Del) approved)

The Revenue’s appeal challenges an order of the Income Tax
Appellate Tribunal (ITAT) which had set aside the disallowance of
`1,62,49,000/- under Section 14A of the Income Tax Act, 1961
(hereinafter referred to as ‘the Act’).

The Assessing Officer (AO) and later the CIT (A) made the
disallowance by taking into account only the investment patterns of
the assessee for the concerned assessment.

The ITAT relied upon the ruling of this Court in CheminvestLimited vs. Commissioner of Income Tax-VI, (2015) 378 ITR 33
which ruled in the absence of any exempt income, disallowance under
Section 14-A of the Act of any amount was not permissible. Since the
decision in Cheminvest Limited (supra) was followed, there is no
substantial question of law that requires consideration.