AKBAR ABDUL ALI,MUMBAI vs. ACIT-17, MUMBAI

O R D E R

PER AMARJIT SINGH, JM:

Ground No. I The learned CIT(Appeals) erred in confirming the disallowance by ACIT u/s 14A Rs. 14,50,031/- inspire of the fact that no tax free income is earned by assessee without considering Judgement as under A.Y.2014-15 CIT v/s M/s. Delite Enterprises (Bombay High Court) Appeal No. 110 of 2009 dated 26/2/2009 Other similar decisions are as under. CIT v/s Lakhani Marketing 272 CIR 265. (P & I-I) CIT v/s MIs Shivam Motors Pvt. Ltd. (All) Appeal No. ITA/88 of 2014 dated 5/5/2014 CIT v/s Cortech Energy Pvt. Ltd (Guj) 45 taxman.co. 116 CIT v/s Holcim India Pvt. Ltd. 90 CCH 0081 (Del HC) Siva Industries & Holding Ltd. v/s ACIT ITA no.2148/Mds/ 10 Chennai 'A dated 20/5/2011 Avshesh Mercantile Pvt Ltd. & 15 others v/s DCIT 'F' Bench dated 13/6/2012 REI Agro Ltd. v/s DCIT 160 TTJ 107 (Kol) ACIT v/s Punjab State co-op. Marketing Fed. Ltd. 14 ITR (Tri) 69 (Chd) Bellwether Microfinance Fund P. Ltd. v/s ITO 165 TTJ 261 (Hyd 'B') Ground No.2 The learned CIT (Appeals) erred in passing the order without giving opportunity to assessee & without issuing notice for hearing for AY 2014/15 while she issued two notices for AY 2011/12 for two appeal for same year. Ld. CIT (A) fixed & issued two notices for hearing for AY 2011/12 as under One for addition of deemed dividend for AY 2011/12 Second for addition of bogus purchases also for AY 2011/12 No notice issued for AY 2014/I5 & No opportunity is given to assessee to explain the facts.”

3. The brief facts of the case are that the assessee filed his return of income on 23.09.2015 declaring total income to the tune of Rs.1,79,390/-. The return was processed u/s 143(1) of the I.T. Act, 1961. Thereafter, the case was selected for scrutiny under CASS. Notices u/s 143(2) & 142(1) of the Act were issued and served upon the assessee. The assessee was an individual stated to be engaged in the business of Trading of Exotic Metals (Domestic & Export) etc. under the name & style and proprietorship concern M/s. Faiz & Co. On verification, it was found that the assessee has invested a sum of Rs.2,80,69,698/- meant for yielding the exempt income. A.Y.2014-15 The assessee nowhere disallowed any expenses to earn the exempt income in view of the provision u/s 14A of the Act r. w. Rule 8D of the Rules. The AO applied the provisions of Section 14A r.w. Rule 8D of the Rules and assessed the expenditure to earn the exempt income to the tune of Rs.14,50,031/-. The total income of the assessee was assessed to the tune of Rs.16,35,369/-. Feeling aggrieved, the assessee filed an appeal before the CIT(A) who confirmed the addition, therefore, the assessee has filed the present appeal before us.