TaxTMI 
TaxTMI 
2015 (8) TMI 113
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....250 of the Income Tax Act, 1961 by the Learned Commissioner of Income Tax (Appeals) I, New Delhi is against law and facts on the file in as much as he was not justified to uphold the action of the Learned Assistant commissioner of Income Tax, Central Circle-13, New Delhi in adding back a sum of Rs. 47,36,570/- under section 14A of the Income Tax Act, 1961 on account of expenditure incurred in relation to exempt income while computing income under the normal provisions of the Income Tax Act, 1961. 2. That the order dated 26-11-2012 passed u/s 250 of the Income Tax Act, 1961 by the Learned Commissioner of Income Tax (Appeals) I, New Delhi is against law and facts on the file in as much as he was not justified to direct the Learned Assistan....
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....e Income Tax Act, 1961 by the Learned Commissioner of Income Tax (Appeals) I, New Delhi is against law and facts on the file in as much as he was not justified to direct the Learned Assistant Commissioner of Income Tax, Central Circle-13, New Delhi to enhance the assessed income by recalculating the disallowance u/s 14A of the Income Tax Act, 196 after verifying the actual amount of interest expenditure and taking into account the amount calculated Rule 8D(2)(iii) for computing book profit for the purpose of computing MAT under section 115JB." 4. Briefly stated the facts giving rise to this appeal are that the AO made additions u/s 14A of the Income Tax Act 1961, (for short the Act) read with Rule 8D of the Income Tax rules 1962 (for sho....
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....AY 2010-11 and also submitted that the ld. CIT(A) was not justified to direct the AO to enhanced the assessed income of recalculating the disallowance u/s 14A of the Act after verifying the actual amount of interest income taking into account the amount calculated rule 8D (2)(iii) to compute the disallowance under Rule 8D of the Rules for computing income under the normal provisions of the Act. 10. The ld. AR further drawn our attention towards paper book page no. 6 to 11 for A.Y. 2009-10 and paper book page no. 9 & 14 for A.Y. 2010-11 and submitted that as per Schedule 13 forming part of final audited accounts submitted before the AO, there was no exempt income for the assessee which could attract disallowance u/s 14A r.w.r. 8D of the R....
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....nable to show any contrary decision of the Hon'ble jurisdictional High Court in the case of CIT vs. Holcim India Pvt. Ltd. (Supra). 13. On careful consideration of above submissions, at the outset, we note that the ld. AR has made a statement at bar on behalf of the assessee before us that the assessee has not earned any exempt income during both the assessment years from the investment made by the assessee during relevant period. 14. We further note that the Schedule 13 forming part of accounts submitting before the AO for both the years also show that in the column of "other income" the assessee has not shown any exempt income during these two financial years relevant to the assessment years under consideration. We also observed tha....
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....he AO to enhance the assessed income by recalculating the disallowance u/s 14A of the Act after verifying the actual amount of invest expenditure and taking into account the amount calculated under Rule 8D(2)(iii) for computing book profit for the purpose of computing Minimum Alternate Tax (MAT) u/s 115JB of the Act. Ld. counsel further pointed out when disallowance and addition u/s 14A of the act r.w.r. 8D of the Rules is not sustainable then how the Revenue Authorities can recalculated the profit for purpose of computing the MAT u/s 115JB of the Act. 18. The ld. DR supporting the action of the AO and CIT(A), contended that while the AO goes on to invoke provisions of Section 14A of the Act r.w.r. Rule 8D of the Rules then for the purpo....