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2021 (10) TMI 548 - AT - Income TaxDisallowance u/s.14A read with Rule 8D - assessee had not produced any documentary evidences to demonstrate that the investments were not related to earning exempt income - HELD THAT:- CIT(A) shows that while allowing complete relief to the assessee on the issue of disallowance U/s. 14A CIT(A) has completely ignored the observations of the AO that the total turnover of the mutual fund was ₹ 101/- Crores and that the major expenditure relating the turnover were audit expenses as the auditor of the company had audited all the transaction expenses relating to turnover. AO had also pointed out incurrence of banking charges for the banking transactions and also incurrence of rental expense, personnel cost, depreciation, communication cost etc - CIT(A) did not consider these observations of the Assessing Officer as being relevant while allowing entire relief to the assessee company. A perusal of the impugned order also shows that the CIT(A) did not refer to any documentary evidences submitted by the assessee in this regard which the assessee would have relied upon to refute the observations of the AO. There is also no bifurcation of income earned as tax free income and taxable income. Apparently CIT(A) has accepted the contention of the assessee without giving a proper and thoughtful consideration to the issue before him. In such circumstance, we have no option but to direct the Ld. CIT(A) to re-examine the issue before him and adjudicate the same after giving proper opportunity to the assessee to present its case. Appeal of the Department stands allowed for statistical purposes.
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