2015 (12) TMI 197

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.... by proposing the following two questions stated to be substantial questions of law: "(a) Whether in the facts and circumstances of the case, the learned ITAT has erred in law and on facts in confirming the order of CIT(A) restricting the disallowance of Rs. 8,53,971/- made by the Assessing Officer under section 14A of the Income Tax Act to the extent of Rs. 42,423/- ? (b) Whether in the facts and circumstances of the case, the learned ITAT has erred in law and on facts in upholding the order of CIT(A) deleting the disallowance of expenditure of Rs. 30,73,341/- covered under section 40A(2)(a) of the Income Tax Act ?" 2. Insofar as proposed question (a) is concerned, the Assessing Officer noticed that the assessee compan....

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....impugned order by reiterating the findings recorded by the Assessing Officer. 4. As can be seen from the order passed by the Commissioner (Appeals), he, after appreciating the material on record, has found that a major portion of the investments made by the assessee were not in cash but by issue of shares of the assessee company to the transferor shareholders of the investee companies during the year under review. Besides, a part of the amount payable against the purchase of shares was unpaid and outstanding at the end of the year and only a very small portion of around Rs. 2.84 lakhs had been paid in cash. The Commissioner (Appeals), accordingly, recorded a finding to the effect that the assessee had been able to establish from its acco....