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2017 (11) TMI 1965 - AT - Income TaxAddition being depreciation claimed on civil work of factory building - assessee could not prove the genuineness of the transaction - CIT-A deleted the addition admitting the additional evidence - HELD THAT:- Since, prima facie, the additional evidences submitted by assessee before Ld. first appellate authority were never confronted to Ld. AO and no remand report was called against the same, we remit the matter back to the file of Ld. AO to re-appreciate the contentions of the assessee and decide as per law after affording adequate opportunity of being heard to the assessee. The assessee, in turn, is directed to substantiate his claim in this regard. This ground of revenue’s appeal stands allowed for statistical purposes. Addition u/s 14A - expenditure incurred on earning the exempt income by invoking provision of section 14A of the I.T.Act read with rule 8D HELD THAT:- We confirm the stand of Ld.CIT(A) firstly because it was noted that own interest free funds of the assessee far exceeded the impugned investments and secondly, no exempt income has been earned by the assessee during the year and hence disallowance u/s 14A was not attracted. These facts are nowhere disputed or controverted by the revenue. Our view is fortified by a recent judgment of Hon’ble Delhi High Court rendered in PCIT Vs. IL&FS Energy Development Co. Ltd. [2017 (8) TMI 732 - DELHI HIGH COURT] where the Hon’ble court has discussed the issue elaborately in the light of statutory provisions and CBDT circular dated 11/05/2014. Thus we dismiss this ground of revenue’s appeal.
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