Addition for non-existent income from carbon credits is not acceptable

M/s. Sri Chamundeswari Sugars Ltd. Vs DCIT (ITAT Bangalore) FACTS – Disallowance u/s 14A r.w.r 8D – Assessee submitted that AO must establish that the borrowed funds have been deployed in making investments that yield exempt income. Disallowance of Professional fees as capital expenditure – Assessee submitted that they had proposed increased in share capital and hence professionals were hired for feasibility study, however, they dropped the proposal to raise additional share capital and claimed the professional fees as expenditure u/s 37. Addition on account of carbon credit – AO obser...