Appeals partly succeed on assessment orders for 2013-14 & 2014-15; adjustments made on expenses & disallowances

The Tribunal partly allowed both appeals against the orders of CIT(A) for Assessment Years 2013-14 and 2014-15. The Tribunal upheld the ex-parte order for Assessment Year 2013-14 due to the assessee's inadequate presentation. Disallowances of administrative expenses and travelling expenses were adjusted based on factual considerations. The disallowance under Section 14A was reduced, aligning with the exempt income earned. The disallowance of employees' contribution to provident fund was upheld in line with statutory provisions and court decisions.

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Issues:
1. Appeal against orders of CIT(A) for Assessment Years 2013-14 and 2014-15.
2. Ex-parte proceedings due to non-appearance of assessee.
3. Disallowance of administrative expenses and travelling expenses.
4. Disallowance under Section 14A of the Income-tax Act.
5. Disallowance of employees' contribution to provident fund.

Analysis:

1. The appeals were filed against orders of CIT(A) for the Assessment Years 2013-14 and 2014-15. The assessee did not appear for multiple scheduled hearings, leading to ex-parte proceedings. The Tribunal proceeded to decide the appeals on merit due to the non-appearance of the assessee.

2. In the appeal for Assessment Year 2013-14, the assessee challenged the ex-parte order by CIT(A). The Tribunal upheld the decision of CIT(A) as the assessee failed to present its case adequately before the authorities.

3. The assessee raised grounds regarding the disallowance of administrative expenses related to investments in partnership firms and shares. The Assessing Officer relied on Section 14A and Rule 8D to calculate the disallowance. However, the Tribunal found that the Assessing Officer's approach was flawed, and the disallowance was reduced based on the meager exempt income of the assessee.

4. Additionally, the disallowance of travelling expenses was contested by the assessee. The Tribunal upheld the Revenue Authorities' decision, emphasizing adherence to accounting principles and the true income assessable in a specific year.

5. For the Assessment Year 2014-15, similar issues arose, including non-appearance of the assessee leading to ex-parte proceedings and challenges to disallowances under Section 14A. The Tribunal adjusted the disallowances based on the facts and circumstances of each case, limiting the disallowances to align with the exempt income earned.

6. The disallowance of employees' contribution to provident fund was also disputed. The Tribunal upheld the disallowance, following the decision of the Hon'ble High Court of Gujarat, emphasizing adherence to statutory provisions.

In conclusion, the Tribunal partly allowed both appeals, adjusting the disallowances and upholding decisions based on legal provisions and factual considerations.

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