TMI Blog2022 (2) TMI 812X X X X Extracts X X X X X X X X Extracts X X X X ..... t appear before the learned CIT(A), but the learned CIT(A) has disposed off appeal filed by the assessee on technical grounds for non-prosecution of appeal, without discussing issue of disallowance of expenses u/s. 14A of the Act. Therefore, considering facts circumstances of this case, we are of the considered view that the issue needs to go back to the file of the Assessing Officer to reconsider the issue in light of our observations hereinabove. AO is directed to re-examine the issue in light of dividend income earned by the assessee for relevant assessment year, to determine disallowance of expenses relatable to exempt income. In case there is no exempt income for relevant assessment year, then Assessing Officer is directed to dele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant is dodging the proceedings by taking adjournments repeatedly for the last couple of years without any compliance either in the form of personal attendance or written submissions. This view of the Commissioner of Income-tax (Appeals) is stoutly denied and opposed to facts. 5. The Commissioner of Income-tax (Appeals) erred in holding that from the conduct of the appellant it is quite evident that the company is no more interested in pursuing the appeal. This observation of the Commissioner of Income-tax (Appeals) is totally uncalled for. 6. The Commissioner of Income-tax (Appeals) erred in holding that the appellant has nothing to say in support of the grounds raised in this appeal. This view of the Commissioner of Income-tax (A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he conclusion to the contrary and confirmation of the addition is not justified. 12. The Commissioner of Income-tax (Appeals) failed to note that there is absolutely no material on record to substantiate that the appellant borrowed the amount for investment in unquoted shares of N/s. Jhaver Associates Private Limited. Insofar as there is no material either documentary or circumstantial to substantiate the aforesaid investment, the confirmation of the addition of ₹ 5,08,352/- invoking the provisions of section 14A r.w. Rule 8D of Income-tax Rules is not in accordance with Law. 13. The Commissioner of Income-tax (Appeals) failed to note that the appellant earned gross receipt of ₹ 50,58,098/-, which includes interest inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quently, the confirmation of the invoking of the provisions of section 14A r.w. Rule 8D of the Income-tax Rules clearly shows that he has failed to apply his mind to the facts of the case in proper perspective particularly since no amount was borrowed for the purpose of investment in shares. 17. The order of the CIT (Appeals) summarily confirming the order of the Income-tax Officer without affording the appellant reasonable being heard is erroneous, illegal, contrary to the provisions of the Income tax Act, violative of the principles of natural justice and is liable to be set aside. 3. Brief facts of the case are that the assessee is engaged in the business of consultation and property development filed its return of income for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les, 1962, and determined total disallowance of ₹ 5,08,352/-. Although, the Assessing Officer has determined disallowance of expenses relatable to exempt income under Rule 8D of I.T. Rules, 1962, but assessment order is silent about exempt income earned by the assessee for relevant assessment year. It is well established principle of law that if there is no exempt income for relevant assessment year, then there cannot be any disallowances of expenses relatable to exempt income u/s. 14A of the Act. This principle is supported by the decision of the Hon'ble Supreme Court in the case of CIT Vs. Chettinad Logistics Pvt. Ltd. (2018) 95 taxmann.com 250. In this case, on perusal of the order passed by the Assessing Officer, there is no o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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