TaxTMI 
TaxTMI 
2016 (2) TMI 677
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....bai (Hereinafter called "the CIT(A)"), for the assessment year 2010-11. 2. The grounds raised by the assessee company in the memo of appeal filed with the Tribunal read as under:- "I.0. Re.: Disallowance u/s 14A of the Income Tax Act, 1961 amounting to Rs. 302,500/-. 1.1 The CIT (Appeals) has erred in disallowing the expenditure aggregating to Rs. 302,500/- u/s 14A of the Income Tax Act, 1961 inspite of the fact that: a. During the year under consideration the Appellant had not incurred any expenditure, whether direct or indirect for the earning of the exempt income. b. The provisions of Rule 8D of the Income tax Rules are not applicable in the present case as there is no expenditure incurred at all. T....
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.... Heat Treatment & Industries (P) Ltd.. v. ITO (2007) 14S0T 348 (Mum) where the expenditure eligible to be disallowed under section 14A was held to be including fixed, variable, direct, indirect, administrative, Managerial or financial". In the present case the Appellant has not incurred any expenditure - nor has the Learned Commissioner gave any finding of any expenditure having incurred - hence the said decision is not applicable to the facts of the case." 3. The brief facts of the case are that the assessee company is engaged in the business of generation of power produced through wind turbine generators. During the course of assessment proceedings u/s 143(3) read with Section 143(2) of the Income Tax Act,1961 (hereinafter called "the ....
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....the assessee company, whereby total disallowance of Rs. 3,02,500/- was made by the AO vide orders dated 31.01.2013 . 4. Aggrieved by the orders dated 31.01.2013 passed by the AO, the assessee company preferred an appeal before the CIT(A). 5. Before the CIT(A), the assessee company reiterated the submission what was made before the A.O. and submitted that the investments were made out of its own reserves and surplus and the assessee company has not borrowed any funds for investing in the shares of its group companies. The assessee company submitted that it is in the business of generation and sale of power generated through Windmills and the company set up 8.4 MW of wind farm project consisting of 14 nos. of Wind Turbine Generators in ....
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....g the financial year 2009-10 to earn the exempt income. The ld. Counsel for the assessee company showed us the balance sheet of the assessee company which is placed in paper book filed with the Tribunal, wherein the share capital and reserves and surplus was shown at Rs. 40.79 crores and the investments were appearing to the tune of Rs. 9.1 crores as at 31-03-2010. The ld. Counsel also drew our attention to the P&L account wherein it reflected Rs. 9.24 crores as income from operations , and Rs. 42.13 lacs towards other income which mainly comprises interest income which is taxable. The ld. Counsel relied on the decision of Hon'ble Delhi High Court in the case of Cheminvest Ltd. v. CIT [2015] 61 taxmann.com 118 (Delhi) and submitted that sin....