2021 (8) TMI 1045

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....t application was filed through the notice of hearing was issued to the assessee. The case file further reveals that even on earlier occasion there was no appearance on behalf of the assessee. Considering the aforesaid facts, we proceed to dispose of the appeal ex parte qua the assessee after considering the material on record and after hearing by the Learned DR. 3. Before us, at the outset, Learned DR submitted that the issue involved in both the appeals are identical except for the year and amounts involved and therefore he has common submissions to make for both the years. In view of the aforesaid submissions of the Learned DR, we for the sake of convenience proceed to dispose of both the appeals by a consolidated order but for the sa....

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....umstance in not upholding disallowance u/s 14A of the IT Act without considering legislative intent of introducing section 14A by the Finance Act, 2001 as clarified by CBDT Circular No. 5/2014 dated: 10.02.2014? 5. Whether the CIT(A) is correct in law and circumstance is legally justified in not upholding disallowance u/ sl4A of the IT Act without considering a legal principle that allowability/disallowability of expenditure under the Act is not conditional upon the earning of the income as upheld by Hon'ble Supreme court in case of CIT vs. Rajendra Prasad Moody [1978] 115 ITR 519? 6. The appellant craves leave for reserving the right to amend, modify, add or forego any ground(s) of appeal at any time before or during ....

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....S Energy Development Company Ltd. vs PCIT in ITA No.520/2017 for A.Y. 2011-12 has been held that when no dividend income was earned no disallowance should be made u/s 14A of the Act. CIT(A) further noted that the Hon'ble Delhi High Court in the case of Chemnivest Ltd vs. CIT-IV 61 Taxmann.com 118 (Delhi) has also held that section 14A will not apply if no exempt income received during the year. She following the aforesaid decisions of Delhi High Court deleted the addition. Aggrieved by the order of CIT(A), Revenue is now in appael before us. 9. Before us, Learned DR supported the order of AO. 10. We have heard the Learned DR and perused the material available on record. The issue in the present ground is with respect to the deletion o....