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2021 (2) TMI 449 - AT - Income TaxAddition u/s 14A r.w.r. 8D - Non recording dissatisfaction about its claim - HELD THAT:- Regarding the addition made on account of interest expenses, we note that the assessee has substantial amount of interest free fund in the form of share capital and reserve which exceeds the amount of investment. This fact can be verified from the balance sheet of the assessee. Intterest free fund of the assessee is sufficient enough to meet the investment then no any disallowances on account of interest is warranted under section 14A r.w.r. 8D of the Act. - we direct the AO to delete the addition made on the account of interest expenses. Addition on account of administrative expenses - AR not submitted before us any details of the expenditure suggesting/justifying that no expenditure was incurred by the assessee in connection with the impugned exempted income. As such the onus lies upon the assessee to provide the documentary evidence that it has not incurred any expense against the exempted income. In the absence of such details, the AO had no option except to resort to the provisions of section 14A read with rule 8D for making the disallowance against the exempted income. Accordingly, we confirm the disallowance made by the AO which was subsequently confirmed by the learned CIT(A) towards the administrative expenses. Disallowance of deduction claimed u/s. 35(1)(ii) - investigation wing of Kolkata in the case of ''School of Human Genetics and Population Health (here in after SHGPH)" in survey as accepted by the office bearer and chartered accountant that the SHGPH has been working as entry provider through bogus bills and donation - institution is receiving bogus donation through the banking channel and thereafter remitting the amount in cash to donor - HELD THAT:- Admittedly, the basis of disallowance was the material gathered during the survey under section 133A of the Act at SHGPH but the same was not supplied as well as no opportunity of cross examination was provided to the assessee despite the specific request made to the AO. It is the settled law that there cannot be any addition/disallowances of the claim made by the assessee until and unless the materials on the basis of which the addition/disallowance was proposed, provided to the assessee for the rebuttal and cross-examination. In this regard we find support and guidance from the judgment of Hon'ble Supreme court in case of Maneka Gandhi vs. Union of India [1978 (1) TMI 161 - SUPREME COURT] wherein as laid down that rule of fair hearing is necessary before passing any order. Similarly, we also note that the revenue has not brought anything on record suggesting that the assessee has received any cash against the donation made by it to SHGPH which was very vital to establish that the assessee has made bogus claim - also see S.G. VAT CARE P. LTD. VERSUS ITO, WARD-4 SABARKANTHA. [2019 (1) TMI 1694 - ITAT AHMEDABAD] - Decided in favour of assessee.
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