TaxTMI 
TaxTMI 
TaxTMI 
2014 (2) TMI 431
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.... matter before CIT(A). CIT(A) vide order dated 17.03.2010 granted partial relief to the Assessee. Aggrieved by the aforesaid order of CIT(A), the Revenue as well as Assessee are now in appeal before us. 4. The ground raised by Revenue reads as under:- 1. The ld. CIT(A) has erred in law and on facts in directing to treat the status of the assessee as individual as against AOP considered by the A.O. 2. The ld. CIT(A) has erred in law and on facts in directing to compute the disallowance as per Rule 8D made u/s. 14A of the Act of Rs. 7,60,709/-. 3. The ld. CIT(A) has erred in law and on facts in directing to compute the deduction u/s. 80IB of the Act considering the job charges of Rs. 1,57,32,114/- and other income of Rs. 8,29,526/-. 5. The effective ground raised by the Assessee reads as under:- 1. In law and in facts and circumstances of the Appellant's case, the ld. CIT(A) has grossly erred in holding that disallowance of interest expenses u/s. 14A should be made as per Rule 8D. 2. In law and in facts and circumstances of the Appellant's case, the ld. CIT(A) has grossly erred in holding that the deduction u/s. 80IB should be allowed in respect of freight receipt income to th....
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....le 8D. 7. Aggrieved by the order of CIT(A), the Assessee is now in appeal before us. Before us, the ld. A.R. submitted that no new investment in shares have been made during the year and further all the investments were made in earlier years. He further submitted that no borrowed funds have been used for the purpose of making investment and further no interest was disallowed in earlier years. He further pointed to the Balance Sheet placed at page 7 of the paper book and submitted that the Assessee was having sufficient interest free funds and therefore the presumptions would be that no borrowed funds have been used for the purpose of investment. He also placed reliance on the decision of Hon. Gujarat High Court in the case of CIT vs. Gujarat Industrial Development Corporation Ltd. (2013) 37 Taxman. Com. 254 (Guj.) and the decision in the case of CIT vs. UTI bank (2013) 32 Taxman. Com 370 (Guj.) 8. The ld. D.R. on the other hand submitted that the details required by the A.O. were not submitted by the Assessee and therefore the A.O. was fully justified in making the disallowance. 9. We have heard the rival submissions and perused the material on record. Before us, the ld. A.R. ha....
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....carried the matter before CIT(A). CIT(A) upheld the order of A.O. by holding as under:- 5.5 The matter has been considered. While the attitude of the appellant and the auditors in not mentioning even the subsection of the section under which a claim is being made shows casual and indifference attitude, yet legally speaking, it could be at the most a defect, more so when the claim is being made and allowed in earlier years. Therefore, the Assessing Officer may not be justified in disallowing the entire claim. 5.6 As far as the quantification is concerned, similar issue had come in the preceding year as well and was decided vide appeal No. CIT(A) GNR/335/07-08 dated 17.12.2008. The said decision has further been adjudicated by ITAT vide its order ITA No. 743/AHD/2009 dated 06.10.2009. As held in that order, for this year also it is held that- i) Job charges amounting to Rs. 1,57,32,114/- be included in the eligible profits. ii) Freight receipts to the extent these are reimbursement of the freight expenses needs to be included in the eligible profits. Assessing Officer may do the necessary verification at appeal effect stage. iii) Similarly if appellant in its computation has alre....
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....ness. Nevertheless, as stated earlier, full details have not come from the Authorised Representative. Therefore it is a matter of scrutiny as to whether all these receipts are the reimbursement of freight expenses and if so of the present year or not. The Assessing Officer is directed to do this scrutiny at the time of giving appeal effect. If to the extent these are the reimbursement for the freight expenses debited to the assessee's Profit and Loss Account for the year, then these are not to be excluded for computation of deduction u/s. 80IB, if not and so much of those which are not, these shall be included for the computation purposes." 13 The assessee is now in appeal against the aforesaid direction of the ld. CIT(A). The ld. A.R. on behalf of the assessee contended that the assessee seeks netting of the freight expenses against freight receipts while computing deduction u/s. 80IB of the Act. On the other hand, the ld. D.R. supported the findings of the ld. CIT(A). 14 We have heard both the parties and have gone through the facts of the case. We find that the ld. CIT(A) restored the matter to the file of the Assessing Officer since full details were not submitted before the ....