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2021 (11) TMI 214 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - Mandation of receipt of exempt income received by the assessee - HELD THAT:- We observe that there is no exempt income received by the assessee during the impugned AY. Therefore, the disallowance made by the AO u/s 14A r.w.r. 8D is not correct. It is a settled law that if there is no exempt income, no disallowance can be made as there are Catena of judgements of Hon’ble Tribunal that if there is no exempt income, no disallowance can be made u/s 14A of the Act. Therefore, we uphold the order of CIT(A) in deleting the disallowance made u/s 14A rwr 8D of the Act. Thus, the grounds raised by the revenue on this issue is dismissed. Disallowance u/s 68 - Share application money pending allotment - HELD THAT:- Amount received in the previous year cannot be taxed in the current AY. Accordingly, the assessee gets relief. Further, on perusal of the above table, the assessee received ₹ 60 lakhs from the Yashoda Energy Pvt. Ltd. during the year and assessee has filed only confirmation letter indicating PAN with the address at Secunderabad, but, no other documents were filed. Whereas the CIT(A) has allowed the addition of ₹ 60,00,000/- without examining the issue in detail as per section 68 of the Act. The AR of the assessee also did not prove the genuineness of the transactions and credit-worthiness of the share applicant, namely, Yashoda Energy Pvt. Ltd. as per section 68 of the Act. The address provided by the assessee is vague as merely quoting the address as Secunderabad, how the department can trace the share applicant whereabouts. In view of the above observations, we deem it fit and proper to remit this issue to the file of the AO with a direction to decide the issue afresh. The assessee is directed to substantiate its claim as per section 68 of the Act before the AO. Thus, the ground raised by the revenue is partly allowed for statistical purposes.
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