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2023 (6) TMI 873 - AT - Income TaxAddition u/s 14A r.w.r. 8D - assessee failed to reconcile the bank statement and some of the expenses claimed in P&L were attributable to the exempt income - CIT-A deleted the addition - HELD THAT:- Undisputedly rather admittedly the assessee has not earned and claimed any exempt income therefore in view of prepositions rendered in the case of Cheminvest Ltd. [2015 (9) TMI 238 - DELHI HIGH COURT] no disallowance u/s. 14A of the Act, r.w.r. 8D of the Rules is called for. Hence we are inclined to hold that the ld. CIT(A) was right and justified in deleting the entire addition and therefore no interference is called for. Accordingly, ground no. 1 of revenue is dismissed. Addition of credit card expenses - assessee failed to reconcile the credit card payment with the information available in AIR for the year under consideration even during the remand proceedings - CIT-A deleted the addition partly - HELD THAT:- CIT(A) noted that the appellant has filed additional evidence proving that the credit card payments mostly related to travelling expenses account but the amount mentioned in the credit card payment details did not tally with the travelling expenses detail. In such a situation of mismatch the CIT(A) rightly held that the credit card payment relate to travelling expenses as well as other expenses also and hence the entire credit card expenses claim by the appellant cannot be allowed fully as the appellant has failed to substantiate an establish that the entire expenses and payment made through America Express bank credit card were incurred wholly and exclusively for the purpose of business of assessee. CIT(A) was rightly adjudicate the issue by considering additional evidence and calling remand report from the AO and he was quite correct and justified in restricting the disallowance to 20% of total claim of assessee and granting relief pertaining to the remaining 80% claim made by the assessee. We are unable to see any valid reason to interfere with the conclusion arrived by the ld. CIT(A). Addition of interest income not offered to tax - assessee failed to reconcile the same with the information available in AIR for the year under consideration even during the remand proceedings - CIT-A deleted the addition - HELD THAT:- CIT(A) has given liberty and direction to the Assessing Officer to verify that as to whether the assessee has offered the interest on refund for taxation for AY 2011-12 and 2012-13. In such a situation no prejudice has been caused to the revenue and there was no leakage of revenue as the interest on refund received by the assessee was offered for taxation by the assessee as per requirement of the Act. CIT(A) was quite correct and justified in confirming the addition as the assessee could not explain the difference of said amount. Therefore, we are constraint to hold that no interference is called for in the first appellate order on this issue as the ld. CIT(A) has noted correct. Decided against revenue.
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