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2022 (3) TMI 966 - AT - Income TaxAddition u/s.14A r/w. Rule 8D being 0.5% of the investment made in earning exempted income - main plea of the assessee before us is that the assessee has no exempt income, being so, there cannot be any disallowance u/s. 14A r/w. Rule 8D - HELD THAT:- AO observed in his order that disallowance u/s.14A could be made even in a year in which no exempt income has been earned or received by the assessee. In our opinion, as decided in the case of PCIT v. Texport Overseas Pvt. Ltd. [2019 (12) TMI 1312 - KARNATAKA HIGH COURT] disallowance u/s. 14A should be limited to the exempt income. Accordingly, we hold that where there is no exempt income, no disallowance could be made by the AO and direct the AO to disallow the expenditure to the exempt income only. If there is no exempt income, no disallowance should be made. Addition on account of amount deducted from profit which is the amount written back in the balance sheet out of BWSSB deposit collected from the flat owners and already offered to tax - contention of the Ld. AR is that this amount has been offered to tax in the AY 2012-13 - HELD THAT:- AR drew our attention to the assessment order for AY 2012-13 dated 14.8.2014 and submitted that the unutilized deposits has been offered to tax for the AY 2012-13 and amount of ₹ 1.09 crores has been included in this amount and same cannot be treated as income for the current AY 2014-15. In our opinion, this requires verification at the end of AO whether the sum is considered as income on account of unutilized deposits in the AY 2012-13 and if it is actually included, the same cannot be taxed in the assessment year under consideration. Accordingly, the issue is remitted to the AO for fresh consideration. Deduction u/s. 80G - Claim denied on the reason that the assessee has not produced any documentary details of donation - assessee before us filed copies of donation receipts and pleaded that the issue may be remitted to the AO for fresh consideration - HELD THAT:- In our opinion, these details were part of the books of account and produced before the AO which are not properly examined by him. Being so, in the interest of justice, we remit the entire issue to the file of AO for fresh consideration. He should take note of these donation receipts and decide the issue in accordance with law. Amount collected towards corpus fund - application of section 28(iv) or 41(1) - HELD THAT:- In the present case, the amount collected towards corpus fund was lying with assessee and it is not perquisites in the hands of the assessee so as to apply the provisions of section 28(iv) of the Act. There is no cessation of liability and it is shown as outstanding liability in the books of account. Being so, the CIT(Appeals) rightly deleted the same. We do not find any infirmity in his order and the same is confirmed. The revenue's appeal is dismissed.
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