2021 (7) TMI 670

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.... the Revenue is directed against the order dated 04.01.2018 passed by the Commissioner of Income Tax (Appeals)-42, New Delhi relating to Assessment Year 2012-13. 2. The relevant facts as culled from the material on records are as under: 3. Assessee is a company which is stated to be engaged in the business of marketing of manufactured fertilizers and retailed intermediate products, Export of....

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....ion of section 14A(1) of the Income tax Act, 1961 (the Act) the purpose for making investment and earning tax exempt income thereon is an essential legal requirement? 3. Whether the term "in relation to" as used in section 14A of the Act contemplates a direct and proximate nexus between "expenditure incurred" and "earning of exempt income? 4. Whether the CIT(A) is correct in not ....

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....hough the notice of hearing was issued to the assessee. In such a situation, we proceed to decide the matter ex parte qua the assessee after considering the material on record and hearing the DR. Though various grounds have been raised by the Revenue, but however the issue involved is with respect to disallowance u/s. 14A of the Act. 5. AO noted that during the year under consideration assessee....

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....efore the CIT(A) who deleted the addition made by the AO. For arriving at the decision to delete the addition he was swayed by the fact that assessee had not received any exempt income in the form of dividend from the investments and that the investment were made out interest free funds. He supported his decision by relying on the decision of Hon'ble Delhi High Court in the case of Cheminvest ....