2018 (3) TMI 1189 - ITAT DELHI

Addition u/s 14A - Held that:- CIT (A) has mentioned that assessee‘s investments have been made in-group concern for exercising control and management of such concerns and in the relevant assessment year, the assessee has not derived any exempt income. This fact is not disputed by the revenue. Therefore, as there is no exempt income earned by the assessee during the year, respectfully following the decision of the Hon‘ble Delhi High Court in case of Cheminvest versus CIT (2015 (9) TMI 238 - DELHI HIGH COURT) , we do not find any infirmity in the order of the Ld. CIT (A) in deleting the disallowance under section 14 A

Addition u/s 68 - Held that:- As in the present case the assessee has given complete details with respect to the addition of ₹ 22,92,00,000/- and the ld AO has failed to make any inquiry we confirm the finding of the ld CIT(A) in deleting the above addition.

Disallowance of interest with respect to loans - Held that:- As we have confirmed the finding of the ld CIT (A) in deleting the addition u/s 68 of the Act, consequently we also confirm her finding in deleting the disallowance of interest on the above loans.

Addition with respect to loan taken by the assessee company from eight different private companies - Held that:- Addition u/s 68 cannot be made where despite complete information submitted by the assessee company no inquiry have been made by the ld AO. For the similar reasons we confirm the findings of the ld CIT (A) in deleting the above addition of ₹ 15.50 crores.

Addition u/s 68 - Held that:- We find that except the change of the name of the lender, and amount involved there is no change in the facts of the case. As on the similar circumstances, we have confirmed the finding of the ld CIT (A) in deleting the addition made by the ld Assessing Officer u/s 68 of the Income Tax Act where the assessee has provided the complete details but he AO has not carried out any inquiry or investigation. Therefore, for the same reasons we confirm the finding of the ld CIT (A) in deleting the addition of ₹ 30 lacs u/s 68 of the Act with respect to non Kolkata Companies.