TaxTMI 
TaxTMI 
2015 (10) TMI 1713
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....lectronically filed its return of income for A.Y. 2008-09 on 20.09.2008 declaring total income of Rs. 5,74,39,342/-. The case was selected for scrutiny and thereafter the assessment was framed under section 143(3) vide order dated 14.12.2010 and the total income was determined at Rs. 5,95,60,010/-. Aggrieved by the order of A.O., Assessee carried the matter before ld. CIT(A) who vide order dated 16.07.2012 dismissed the appeal of the Assessee. Aggrieved by the aforesaid order of ld. CIT(A), Assessee is now in appeal before us and has raised the following grounds:- 1. The order passed by the Hon'ble Commissioner of Income Tax (Appeal) - IV, Baroda, is bad in law and be quashed. It be held so now and returned income be accepted by deleti....
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....vestments of Rs. 3.56 crores, had earned tax free income comprising of dividend of Rs. 1,90,450/-, and share of profits from partnership firm of Rs. 6,55,694/- and thus earned aggregate tax free income of Rs. 8,46,144/- and had also paid interest of Rs. 21.87 crores. He was therefore of the view that in view of the tax free income received, disallowance u/s. 14A was required to be made. He accordingly worked out the disallowance u/s. 14A by following the method prescribed under Rule 8D and worked out the total disallowance at Rs. 10,20,670/- which comprised of disallowance of interest of Rs. 8,42,495/- and administrative expenses of Rs. 1,78,175/-. Aggrieved by the order of A.O., Assessee carried the matter before ld. CIT(A) who confirmed t....
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....ot been filed by the appellant before the undersigned. In view of these facts the above various decisions as cited by the AR in support of his submission are not applicable to the case of the appellant. Thus in my opinion the AO has correctly calculated disallowance of Rs. 10,20,670/- u/s 40A of the IT Act and therefore the same is confirmed. 6. Aggrieved by the aforesaid order of ld. CIT(A), Assessee is now in appeal before us. 7. Before us, ld. A.R. reiterated the submissions made before A.O and ld. CIT(A) and further submitted that A.O has not proved nexus of the interest bearing funds being utilized for the purpose of making investments. He further submitted that the investments of Rs. 3.56 crore are carried forward since A.Y. 2005-0....
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....erial on record. The issue in the present ground is with respect to disallowance u/s. 14A. From the copies of the investment schedule for earlier years that has been placed on record, it is seen that the total investments as on 31st March, 2004 was Rs. 3,56,29,924/- and as on 31st March, 2005, the investment marginally increased by Rs. 5,000/- and the total investments as on 31st March 2005 was Rs. 3,56,34,924/- and that the same balance of investments have continued from 31st March 2005 to 31st March, 2008 with no change in the value of investments nor its composition meaning thereby that Assessee has not made any new investments during the period 31st March 2005 to 31st March 2008. The aforesaid facts have not been disputed by Revenue. It....