2021 (1) TMI 231

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....,105/- under section 37(1) of the Act. (b) The appellant submit that it had provided a without prejudice working on rational and scientific basis for disallowance to be made under section 14A of the Act during the course of the assessment proceedings. The appellant submits that it had inadvertently mentioned in the Statement of Facts that the said amount was added to the computation of total income. The learned Commissioner of Income-tax (Appeals) failed to appreciate that in the Grounds of appeal (No.3) it had specifically mentioned that without prejudice to its claim that no disallowance was called for under section 14A of the Act, the disallowance be restricted to Rs. 51,35,105/-. (c) The appellant submits that it is engaged in the....

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....ngs, the assessee was asked to show cause why the expenditure relatable to the exempt income should not be disallowed as per the provisions of Section 14A read with Rule 8D(2), The AO specifically asked the assessee whether it was maintaining separate books of accounts in respect of the exempt income. In response, the assessee made submissions before the AO. The AO rejected the assessee's submissions and invoked the provisions of Section 14A read with Rule 80(2). In the assessment order, the AO disallowed a sum of Rs. 1,69,35,716/- under clause (iii) of Rule 80(2) as expenditure relatable to the exempt income. 4. Upon the assessee's appeal, the ld. CIT(A) deleted the addition upon a finding that no exempt income was earned. He placed r....

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....ase has been fixed for hearing on 22.03.2019, however, there was no response from the appellant. Again, the hearing was fixed on 28.03.2019. however, the appellant neither attended hearing on the said date nor made any written submissions. Therefore, it is presumed that the appellant has nothing to say in this regard. Accordingly, the sum of Rs. 51,35,105/- is added to the appellant's total income u/s. 37(1) of the Act. 7. Against this order, the assessee is in appeal before us. 8. Upon careful consideration we find that ld. CIT(A) has deleted the addition made by the assessing officer u/s.14A by giving a finding that there is no exempt income earned, and accordingly on the touchstone of honourable jurisdictional High Court decision as r....