GEHNA PRECIOUS METAL LTD.,DELHI vs. DCIT CENTRAL CIRCLE-2, FARIDABAD

None appeared on behalf of the assessee at the time of hearing. The order sheet entry shows that the assessee was not appearing in the past occasions. The notice issued through RPAD fixing the hearing for 2 ITA.No.1772/Del./2019 M/s. Gehna Precious Metal Ltd,., Delhi. 29.11.2021 was returned by the Postal Authorities with the remark “No such person at this address”. The assessee has not taken any steps to intimate the change of address, if any. Under these circumstances, I deem it proper to decide the issue on the basis of the material available on record and after hearing the Ld. D.R.

The assessee in its various grounds of appeal has challenged the order of the Ld. CIT(A) in sustaining the various additions made by the A.O.

The facts, in brief, are that the assessee is a Company engaged in the business of trading of gold and silver jewellery and bullion on wholesale and cash and carry basis and trading of shares and securities. It filed its return of income declaring NIL income on 19.09.2014. The A.O. completed the assessment on a total income of Rs.11,41,517/- wherein he made addition of Rs.87,962/- on account of disallowance under section 14A and Rs.10,53,555/- on account of set off of losses.

3 ITA.No.1772/Del./2019 M/s. Gehna Precious Metal Ltd,., Delhi. 5. In appeal, the Ld. CIT(A) upheld the action of the A.O.

Aggrieved with such order of the Ld. CIT(A), the assessee is in appeal before the Tribunal.

I have heard the Ld. D.R. and perused the orders of the authorities below. I find the A.O. in the instant case made addition of Rs.87,962/- on account of disallowance of expenses under section 14A and addition of Rs.10,53,555/- by not allowing the loss to be set off. I find the Ld. CIT(A) upheld the action of the A.O. So far as the disallowance of expenses under section 14A of the I.T. Act is concerned, I find the Ld. CIT(A) has given a finding that the disallowance worked out by the A.O. is as per the provisions of the I.T. Act and has been restricted to the dividend earned during the year. Similarly the benefit of set off of losses was also confirmed by the Ld. CIT(A) on the ground that there is a change in shareholding of the company and, therefore, in view of the provisions of Section 79 of the I.T. Act, 1961, the assessee is not entitled to set off the brought forward losses. I do not find any infirmity in the order of the Ld. CIT(A) on 4 ITA.No.1772/Del./2019 M/s. Gehna Precious Metal Ltd,., Delhi. both these issues. There is nothing on record to take a contrary view than the view taken by the Ld. CIT(A) on these issues. Accordingly, the order of the Ld. CIT(A) is upheld and the grounds raised by the assessee are dismissed.

In the result, appeal of the Assessee is dismissed.