TaxTMI 
TaxTMI 
2022 (3) TMI 966
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of the CIT(Appeals)-2, Bengaluru for the assessment year 2014-15. ITA No. 1847/Bang/2017 (Assessee's appeal) 2. The assessee has raised the following grounds:- "1. The order of the Learned Commissioner of Income-Tax (Appeals)-2, Bangalore is opposed to Law on the facts of the case. 2. The CIT(A) has erred in confirming the addition of Rs. 1,43,255/- made by the A.O. u/s. 14A r/w. Rule 8D being 0.5% of the investment made in earning exempted income. 3. The A.O. and CIT(A) failed to understand the fact that there was no exempted income during the year from the above investment in the mutual fund. As such addition at the rate of 0.5% of the investment cannot be made. 4. Rule 8D(ii) can not be invo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Rs. 5,79,500/- being claim of the appellant u/s. 80G stating that no material was produced by the appellant at the time of hearing of appeal, when in fact your appellant has filed all the details before the A.O. and CIT (A). 8. For the grounds stated above it is prayed that above additions may be deleted and such other orders may be passed to meet the Ends of Justice." 3. Grounds No. 2 to 4 relate to the issue of disallowance u/s. 14A r/w. Rule 8D. The Assessing officer noticed that the appellant has made certain investments, the income from which is exempt from Income tax. The appellant had not debited any expenses incurred on these investments to earn tax-free income. Therefore, the AO made a disallowance of Rs. 58,026 by invo....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... In view of the stand taken by the department itself in the above case before the Hon'ble High Court, this addition needs to be deleted. Apart from this the A.O. has added an amount of Rs. 1,43,225 as against Rs. 57,324 being 0.05% of the investment. The CIT(Appeals) however confirmed the order of AO. 5. The main plea of the assessee before us is that the assessee has no exempt income, being so, there cannot be any disallowance u/s. 14A r/w. Rule 8D. The AO observed in his order that disallowance u/s. 14A could be made even in a year in which no exempt income has ben earned or received by the assessee. In our opinion, as decided by the Hon'ble High Court of Karnataka in the case of PCIT v. Texport Overseas Pvt. Ltd., 313 CTR 485....
X X X X Extracts X X X X
X X X X Extracts X X X X
....een offered to tax for the AY 2012-13 and amount of Rs. 1.09 crores has been included in this amount and same cannot be treated as income for the current AY 2014-15. In our opinion, this requires verification at the end of AO whether the sum of Rs. 2,53,00,000 is considered as income on account of unutilized deposits in the AY 2012-13 and if it is actually included, the same cannot be taxed in the assessment year under consideration. Accordingly, the issue is remitted to the AO for fresh consideration. 8. The last ground is regarding non-granting deduction u/s. 80G of Rs. 5,79,500. The Ld. AR submitted that the assessee made donation of Rs. 5,79,500 and claimed deduction u/s. 80G of the Act. The same was denied on the reason that the ass....