TaxTMI 
TaxTMI 
2026 (6) TMI 478
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....appeal before the Tribunal raising the following grounds of appeal: "1. For that Ld CIT(A) erred in upholding the addition of Rs 602,349/- under section 14A of Income Tax Act 1961 read with Rule 8D of Income tax Rules 1962 even though exempt income amounted to Rs 175,268/- only. 2 For that Ld CIT(A) ought to have accepted that the appellant was an auction agent in wholesale fruit market and cash deposit represented sale proceeds from such auction 3. For that Ld CIT(A) ought to have held that the entire cash deposit cannot represent the income as it was derived from auction sale of fruits. 4. For that, alternatively, only peak credit in bank account in form of cash deposit could have been treated as income....
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....ssed on these grounds. 7. In the result, the appeal is Dismissed." 4. Aggrieved with the order of the Ld. Addl/JCIT(A), the assessee has filed the appeal before the Tribunal. 5. Rival contentions were heard and the submissions made have been examined. 6. We have considered the submissions made, gone through the facts of the case and perused the record and the order of Ld. Addl/JCIT(A). 7. Ground Nos. 2, 3 & 4 do not emanate from the assessment order and therefore, the same are dismissed. 8. Ground No. 1 relates to addition of Rs. 6,02,349/-. During the course of hearing before us, the assessee has filed the copy of audited balance sheet and profit and loss account, page 2 of which is the balance sheet showing capital....
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....exceed the amount of exempted income. Since the amount proposed to be added in the assessment order is higher than the amount of exempted income. the humble petitioner is here in appeal. Your Honour is requested to consider the matter in the light of facts and judicial pronouncements made in the subject and kindly arrange to pass an order granting relief in the matter. With Kind regards" 9. The Ld. Addl/JCIT(A) examined the submissions that the disallowance was more than the exempt income of Rs. 1,75,268/- and the same cannot exceed the exempt income earned but dismissed this ground of appeal by holding that the suo moto disallowance of Rs. 1,75,268/- was not adequate. Before us the Ld. AR requested to limit the disallowance to ....
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....nd section 14A applies irrespective of whether shares are held to gain control or as stock-in-trade. Further, the decision of the Special Bench in Cheminvest Ltd. (supra) has been subsequently overruled by the Hon'ble Delhi High Court in the case of Cheminvest Ltd. vs. Commissioner of Income-tax-IV [2015] 61 taxmann.com 118 (Delhi)/[2015] 234 Taxman 761 (Delhi)/[2015] 378 ITR 33 (Delhi)/[2015] 281 CTR 447 (Delhi)[02-09-2015] in which it has been held that section 14A of the Act will not apply if no exempt income is received or receivable during relevant previous year. The assessee also claims that no borrowing had been made for investment in shares. 11. We have considered the submissions made, gone through the facts of the case and p....