TaxTMI 
TaxTMI 
2017 (4) TMI 1095
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....9;). The assessee has filed cross-objections against the very same orders of the CIT(Appeals). Therefore, we heard appeals of the Revenue and cross-objections of the assessee together and disposing of the same by this common order. 2. There was a delay of 5 days in filing the appeals by the Revenue, for assessment years 2009-10, 2010-11 and 2012-13. The Revenue has filed petitions for condonation of delay. We have heard the Ld. Departmental Representative and the Ld.counsel for the assessee. We find that there was sufficient cause for not filing these appeals before the stipulated time. Therefore, we condone the delay and admit the appeals. 3. Shri A.V. Sreekanth, the Ld. Departmental Representative, submitted that the CIT(Appeals) delete....
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....ing to the Ld. D.R., the CIT(Appeals) is not justified in allowing the claim of the assessee. 5. On the contrary, Sh. N. Devanathan, the Ld.counsel for the assessee, submitted that the assessee admittedly has not received any income during the years under consideration. Placing reliance on the judgment of Madras High Court in Redington (India) Ltd. v. Addl. CIT in T.C.A. No.520 of 2016 dated 23.12.2016, the Ld.counsel submitted that on identical situation, the Madras High Court held that by applying the matching concept, in a year where there is no exempted income, there cannot be any disallowance in relation to such assumed income. Therefore, according to the Ld. counsel, the CIT(Appeals) has rightly deleted the addition made by the Asses....
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....ection 154, for any assessment year beginning on or before the 1st day of April, 2001." 7. In view of Section 14A of the Act, there cannot be any deduction in respect of expenditure incurred by the assessee in relation to income which does not form part of total income. For the purpose of computation of disallowance, the rule making authority, by virtue of power conferred on them, provided a method under Rule 8D(2) of Income-tax Rules, 1962. Whenever the Assessing Officer having regard to the account of the assessee, was not satisfied the correctness of claim that expenditure incurred by the assessee or the claim made by the assessee that no expenditure was incurred in relation to the income which does not form part of total income, he ma....