9911796707
TMI Blog2024 (7) TMI 1232X X X X Extracts X X X X X X X X Extracts X X X X ..... has raised seven grounds of appeal, the assessee did not press Grounds No. 2 to 4. The remaining grounds are relating to the following issues: a. Addition of interest income of Rs. 12.02 crores; b. Disallowance made under Section 14A of the Act at Rs. 13.45 crores; 2. The first issue relates to addition of interest income of Rs. 4.02 crores. The assessee had declared interest income of Rs. 20,76,070/- in its return of income. From an internal portal named 'insight portal', which could be viwed by the Assessing Officer only, the AO noticed that the assessee has received interest income from the following persons: S.No. Name TAN Amount of Interest Rs. 1. Essar Oilfield Services India Ltd., MUME0779B 85,04,279 2. Essar Shipping ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unless the relevant information were supplied to the assessee. We find merit in the above said submissions of Ld A.R. The Principles of natural justice would require the AO to confront the materials relied upon by him for making the addition. In the instant case, we are of the view that there is violation of the above said principle. Accordingly, we are of the view that this issue needs a fresh examination at the end of the Assessing Officer. Accordingly, we set aside the order passed by the Ld.CIT(A) on this issue and restore the same to the file of the Assessing Officer for examining it afresh, after providing the relevant material to the Assessing Officer. 5. The next issue relates to disallowance made under Section 14A of the Act. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de under Section 14A of the Act cannot be more than the exempt income. The Hon'ble Delhi High Court in the case of IL & FS Energy Development Company Ltd., 399 ITR 483 has held that the disallowance under Section 14A of the Act is not required to be made when the assessee has not earned any exempt income. 7. In the instant case, the admitted fact is that the assessee did not earn any exempt income. Hence, the disallowance under Section 14A of the Act is not called for as per the decision rendered by Hon'ble Delhi High Court in the case of IL & FS Energy Development company Ltd (supra). Hence the AO was not justified in making disallowance u/s 14A of the Act when the assessee has not earned any exempt income. Accordingly, we set aside the o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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