2014 (4) TMI 311

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....in law and in facts in confirming action of AO in disallowing Rs.5,38,121/-, being weight shortage expenses. Both the lower authorities erred in ignoring the evidences produced by the appellant in the form of correspondences with the parties and debit notes issued by the parties. Ld.CIT(A) ought to have deleted the disallowance. 2. Learned CIT(A) has erred in law and in facts confirming action of AO of disallowing expenses on adhoc basis of Rs.48,748/- by invoking provisions of section 14A of the Act. Both lower authorities erred in ignoring the fact that the appellant had sufficient own funds to invest in tax free dividend earning investment. Further there was no expense which can be directly or indirectly attributable to such investmen....

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....se of transit, there was weight loss. The ld.counsel for the assessee submitted that the authorities below were not justified in disallowing the genuine expenses. 3.1. The ld.Sr.DR submitted that the assessee has been engaged in this line of business for many years and the assessee has never claimed this kind of expenses in earlier years. He further submitted that the assessee has not given any evidence in support of its claim that there was loss of weight. 3.2. In rejoinder, the ld.counsel for the assessee submitted that the evidences were placed on record; namely, the ledger account of weight shortage expenses, the debit notes raised by the concerned parties. The ld.counsel for the assessee submitted that merely because the assessee....

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....peals) for AY 2005-06, dated 31/05/2012. 6. On the contrary, ld.DR supported the order of the authorities below and submitted that as per the decision of Hon'ble Bombay High Court in the case of Godrej & Boyce Mfg.Co.Ltd.(supra), disallowance of interest and other expenses relatable to exempt income are to be disallowed. 7. We have heard the rival submissions, perused the material available on record and gone through the orders of the authorities below. We find that the Coordinate Bench in the case of ACIT vs. Torrent Pharmaceuticals Ltd.(supra), decided the issue by observing as under:- "16. We have heard the rival submissions, perused the material available on record. We find that Ld. CIT(A) has given a categorical finding in par....