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2018 (11) TMI 594 - AT - Income TaxAddition u/s 68 - denial of natural justice - Held that:- No summons u/s 131 of the Income Tax Act, 1961 were received by the assessee. As argued that the assessing officer has not made any independent enquiry at his end, to disprove the claim of the assessee companies. CIT(A) has passed a mechanical order without considering the legal position and the facts of the case as brought out by the AO. AO has not given adequate opportunity and has passed an order without enquiring. The Kolkata Bench of the ITAT has passed similar order in many cases on the same issue of additions made u/s 68 of the share capital, has set aside the assessment to the file of the AO for fresh adjudication in the lines stated above after giving the assessee adequate opportunity of being heard. Keeping in view the totality of the facts and circumstances of the case and also the orders of the Co-ordinate Bench of the Tribunal in similar matters, we set aside this issue to the file of the AO for fresh adjudication and in accordance with law, after giving the assessee adequate opportunity of being heard. Accordingly Ground No. 3 of the assessee is allowed for statistical purposes. Disallowance u/s 14A r.w.r. 8D - Held that:- We find that it is not in dispute that the assessee has no income from dividends which is exempt u/s 10 of the Act, during the Assessment Year under consideration. Under these circumstances, there cannot be any disallowance u/s 14A of the Act, as held by the Hon’ble Jurisdictional High Court in the case of CIT vs. Ashika Global Securities Ltd. [2018 (7) TMI 1425 - CALCUTTA HIGH COURT]. Hence, we delete the disallowance in question and allow this ground of appeal of the assessee.
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