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2019 (4) TMI 287 - AT - Income TaxAssessments u/s 153A r.w.s. 143(3) - addition of advertisement expenses based on post-search investigation - CIT(A) deleted addition based on earlier year order - disallowance u/s 14A - HELD THAT:- Since in A.Y. 2007-2008, admittedly, the departmental appeal have been dismissed by the Tribunal on account of low tax effect, therefore, the same requires readjudication at the level of the CIT(A). We, accordingly, set aside the Orders of the authorities below and restore this issue to the file of CIT(A) with a direction to redecide this ground on merits giving reasons for decision in the same, by giving reasonable, sufficient opportunity of being heard to the assessee and A.O. Admission of additional ground - addition is not permissible if no incriminating material found - HELD THAT:- we are of the view that additional ground raised in all the matters are legal in nature and there is no need to investigate into fresh facts, therefore, additional ground shall have to be admitted. Since the additional ground raised for the first time and have not been adjudicated in two years by the authority below, therefore, the same requires consideration at the level of the Ld. CIT(A). We, accordingly, set aside the orders of the authorities below and restore the additional ground to the file of Ld. CIT(A) with a direction to decide this additional ground as per law, by giving reasonable and sufficient opportunity of being heard to the assessee and A.O. in all the three years. Disallowance u/s 14A - HELD THAT:- We find from the impugned order that assessee has merely submitted before CIT(A) that he has not earned any substantive exempt income, on which, no finding of fact have been recorded by the CIT(A) as well. It is well settled law that if the assessee did not earn any exempt income, no disallowance under section 14A could be made. We rely upon the Judgment in the case of Cheminvest Ltd. [2015 (9) TMI 238 - DELHI HIGH COURT]. No finding of fact have been recorded by the CIT(A) on the same. Therefore, this issue also requires re-consideration at the level of the CIT(A) - since we have admitted additional ground which is purely legal in nature and directed the CIT(A) to decide the same as per Law, therefore, the issue on merit shall have to be decided after deciding the legal issue which would have bearing on the assessment of income of assessee as per law. In case assessee succeeds on legal ground, perhaps, there may not be any need to decide grounds on merits. Set aside the Orders of the authorities below and restore the matter in issue to the file of CIT(A) to decide the issues afresh as is directed above, therefore, this issue is also restored to CIT(A) with a direction to decide this issue afresh, by giving reasonable, sufficient opportunity of being heard to the assessee and A.O.
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