2025 (11) TMI 276

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....at the Ld. CIT(Appeals) had not followed the provisions as contained in Section 250 and hence has resulted in violation of Principles of Natural Justice. So, the order of CIT (Appeals) shall not stand valid in law. 2. Section 14A read with rule 8D and Section 250: That the learned CIT (Appeals) has erred both in law and on facts by confirming the addition of Rs. 1,43,93,914/- on account of wrong interpretation of the provisions. The impugned order was passed by the then AO without making enquiries/verification. 3. Section 14A read with rule 8D and Section 250: The assessee therefore pray that the addition of Rs. 1,43,93,914/- be deleted. And, accordingly the demand of Tax of Rs. 49,71,360/- be deleted along with Interest a....

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....m which it is claimed exempted from section 67A which is disallowable u/s. 14A r.w.s. 8D of the Act. Thus, the Assessing Officer observed that the assessee committed default in not disallowing the expenditure related to exempt income u/s. 14A r.w.r. 8D of the Act which resulted in income to the tune of Rs. 1,43,93,193/-. The assessee has not filed the explanation regarding the show cause notice and thus, the Assessing Officer made the disallowance u/s. 14A r.w.r. 8D and given the working in para 7 of the assessment and accordingly made addition of Rs. 1,43,93,914/- to the total income of the assessee as well as book profit u/s. 115JB of the Act. 4. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The ....

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.... income in income tax return filed u/s. 148. The assessee never claimed any expense related to exempt income as the assessee has not received any dividend in the particular assessment year. Thus, in light of this, the 14A disallowance r.w.r. 8D is not justified and the same should be allowed. 6. The ld. D.R. relied upon the order of the CIT(A). 7. We have heard both the parties and perused all the relevant material available on record. The assessee invested in two entities i.e. Creative Infocity Ltd. and in Gujarat Information Technology Fund of Gujarat Venture Finance Ltd. and the assessee has not incurred any cost for purchasing the shares of Creative Infocity Ltd. as well as Gujarat Government has given the loan which was interest ....