TaxTMI 
TaxTMI 
2012 (4) TMI 674
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....dition of accrued interest on Non performing assets to the tune of ₹ 7424722.00 Ground 3 relates to addition on account of amount received towards repayment of principal by treating same as towards interest due to the tune of ₹ 10497000.00 Ground 4 relates to disallowance of expenses which are penal in nature at ₹ 3000.00 M/s KEC Holdings Limited Ground 5 relates to disallowance of expenses u/s 14A of the Act at ₹ 900000.00 Ground 6 relates to addition of reversal of provision for NPA at ₹ 38250000.00 Ground 7 relates to treating income from business as income from other sources Ground 8 relates to computation of book profit u/s115JB of the Act, and Ground 9 relates to levy of interest u/s 234B and 234D ....
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....e A.Y. 2003 - 04 went on to decide the appeal and confirmed the additions which are now subject matter of the present appeal. 8. At the outset the learned counsel appearing for the appellant submitted that he is not pressing ground Nos. 1 & 4, therefore ground Numbers 1 and 4 are accordingly dismissed. 9. The Ld counsel further pointed out that issues raised through ground numbers 2 & 3 are covered by the decision of Income- tax Appellate Tribunal Mumbai Bench 'A' in ITA No. 3734/MUM/2009 for A.Y. 2003-04 in appellant's own case and the said decision of the tribunal should be followed in the present appeal also. 10. Let us examine the contention of the Ld. Counsel so far as ground numbers 2 & 3 are concerned. Ld. Counsel drew....
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....ention of the assessee did not find any favour from the Assessing Officer who went on to estimate the expenditure incurred to earn exempt income at ₹ 900000.00 and disallowed the same while computing the taxable income of the assessee. 15. Before CIT[A] , assessee reiterated its stand that there was no direct nexus between the administrative expenses incurred during the year and dividend income earned and there fore there cannot be any disallowance . Ld M/s KEC Holdings Limited CIT[A] relying on the decision of the special bench of Mumbai tribunal in ITA No.8057/Mum/03 dated 20.10.2008 in the case of ITO V/s. Daga Capital Management P. Ltd, directed the Assessing Officer to recomputed the disallowance u/s14A as per rule 8D of the Act....
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....has not furnished any details in respect of such a claim of deduction . 20. The ld CIT[A] while confirming the order of the assessing officer observed that the assessee has not followed the principles of accountancy in claiming deduction of provisional expenditure without debiting to the profit and loss account, further , the assessee did not submit any detail before the AO, though the AO specifically asked the assessee to substantiate its claim . 21. Before us the ld counsel appearing for the appellant stated that the appellant has added back the provision so made in the year in which it was made therefore reversal of the provision during the year under consideration should not be taxed again . 22. We find that this aspect has not been ....