TaxTMI 
TaxTMI 
2014 (1) TMI 898
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....ejudice to the above, the Ld CIT (A) erred in law by upholding the disallowance of bad debts twice ie disallowance as bad debts and also considering the same while working out the disallowance u/s 14A." 3. Briefly stated relevant facts of the case are that the assessee is engaged in the business of trading in shares, letting out of properties and management consultancy services. Assessee filed the return declaring the total income of Rs. 31,76,345/-. AO scrutinized the return u/s 143(3) of the Act and the assessed income of assessee was determined at Rs. 36,92,795/- which includes the addition by way of disallowance of Rs. 3,43,650/- u/s 14A the Act. Further, disallowance fo the bad debts written off amounting to Rs. 1,72,800/- is the also....
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....any application of mind. Ld Counsel brought our attention to the assessee's submissions made in this regard and the his conclusions discussed in para 3, 3.1 and 3.2 of the impugned order. As per the counsel, the CIT(A) failed to appreciate the judgmental laws on the dispute and mentioned that there is no need for the assessee to demonstrate that impugned debt has become bad. There is no such requirement as per the judgment of the Supreme Court in the case of TRF Ltd. (supra). It is not the case of the CIT (A) that the debts were not written off in the books of accounts. In our opinion, the case of the assessee is covered by the above cited Supreme Court judgment in the case of TRF Ltd (supra) as well as the jurisdictional High Court judgmen....
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....at most of the establishments and other expenses relates to earning of the dividend income (as other source of income is Rent / mfg consultancy). As such, 80% of the same, ie 80% of Rs.3,71,180/- is disallowed u/s 14A r.w. Rule-8D(ii) = Rs. 2,96,944/- on estimate basis. (Depreciation amounting to Rs. 8,23,758/- & Miscellaneous Expenses written off amounting to Rs. 38,540/- and Electric Charges Rs. 27,525/- has already been added back suomoto). 2.4. Disallowances is therefore restricted to Rs. 2,96,944/-." 6. Aggrieved with the same, assessee is in appeal before the Tribunal with the limited issue ie the bad debts so debited to the P & L Account must not be considered while making disallowance u/s 14A of the Act and more so when the said ....