9911796707
TMI Blog2024 (7) TMI 1232X X X X Extracts X X X X X X X X Extracts X X X X ..... inciples of natural justice would require the AO to confront the materials relied upon by him for making the addition. In the instant case, we are of the view that there is violation of the above said principle. Accordingly, we are of the view that this issue needs a fresh examination at the end of the Assessing Officer Disallowance made u/s 14A - assessee has not earned any exempt income - HELD THAT:- In the instant case, the admitted fact is that the assessee did not earn any exempt income. Hence, the disallowance under Section 14A of the Act is not called for as per the decision rendered in the case of IL FS Energy Development company Ltd[ 2017 (8) TMI 732 - DELHI HIGH COURT] Hence the AO was not justified in making disallowance u/s 14A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,23,03,589 Hence, the Assessing Officer proposed to make addition of the difference amount of interest income Rs. 12.02 crores to the total income of the assessee. Since the assessee did not furnish any reply, the Assessing Officer added the above said amount to the total income of the assessee. 3. Before the Ld.CIT(A), the assessee submitted that the Assessing Officer has not confronted the material relied upon by him for making the impugned addition. Hence, the Ld.CIT(A) called a remand report from the Assessing Officer. However, in the remand report also, the Assessing Officer reported that the addition has been made on the basis of the material available with him. Accordingly, the Ld.CIT(A) confirmed the above said addition of Rs. 12.02 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 31-03-2017. The assessee had also shown long term borrowings of Rs. 6,453 crores and claimed interest expenditure of Rs. 20.66 crores. The Assessing Officer noticed that the assessee did not make any disallowance as required under Section 14A of the Act. When questioned about the same, the assessee replied that it has not earned any exempt income during the year under consideration and hence, it has not incurred any expenditure on the NIL exempt income. The Assessing Officer, however, did not accept the above said contentions of the assessee and accordingly computed the disallowance under Section 14A r.w. Rule 8D of Income Tax Rules, 1962 ( the Rules ) at Rs. 13.45 crores. The Assessing Officer added the same to the total income of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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