2016 (8) TMI 818

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....0,28,48,393/-. However, vide assessment order dated 28.12.2010, passed u/s 143(3) of the Income Tax Act, 1961 (the Act for short) the AO assessed the total income at Rs. 10,83,43,060/- after making disallowance of Rs. 7,44,643/-u/s 14A read with Rule 8D of the Income Tax Rules and disallowance of Rs. 47,50,000/- under section 80G of the Act. In appeal the Ld. CIT(A) confirmed both the disallowances. 3. The assessee is in appeal before this Tribunal against the impugned order on the following effective grounds:- I. DISALLOWANCE U/S 14A r.w.r 8D:- "1. The Learned CIT(A) erred in confirming the disallowance u/s 14A r. w. Rule 8D. 2. The Learned CIT(A) failed to appreciate the fact that (i) The appellant is doing share trading & ....

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....very case is to be decided on its own merit and the Ld. CIT(A) has confirmed the findings of the AO keeping in view the issues raised by the assessee, therefore, there is no scope to interfere with the impugned order. 6. We have heard the rival submissions and perused the material on record including the decision relied upon by the assessee. The coordinate Bench of the Tribunal following the decision rendered by Hon'ble Karnataka High Court in CCL Ltd. vs. JCIT( 250 CTR 291), has decided the identical issue in the case of M/s Advantage Securities Ltd(supra) holding as under:- "6. However, the Hon'ble High Court of Karnataka has recently considered the disallowance of expenses incurred on borrowings made for purchase of trading shares ....

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....ld the order of the Tribunal disallowing the expenditure in relation to the dividend from shares. Thus there being a direct judgment of a Hon'ble High Court on this issue, the same has to be followed in preference to the decision of the Special Bench of the Tribunal in the case of M/s. Daga Capital Management P. Ltd. (supra). Infact, we note that the Tribunal in the case of Ganjam Treading Co. Ltd. (supra) has already considered this situation and held that in view of the judgment of Hon'ble High Court of Karnataka in the case of CCL Ltd. Vs. JCIT (supra) the disallowance of interest in relation to the dividend received from trading shares cannot be made. We, therefore, see no infirmity in the order of the Ld. CIT(A) in deleting the disallo....

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....O has disallowed the claim of the assessee on the basis of report dated 22.12.2010 of the investigation wing of the department, which revealed that during the relevant period SIES used to issue bogus certificates u/s 80G of the Act in favour of various assesses. As per the report SIES used to accept capitation fee in cash from the students and record in the books of account as donation in the name of different corporate entities. These corporate entities used to issue cheques in favour of SIES. In return, SIES used to issue certificates u/s 80G/35/(1)(ii) and also return the proceeds of cheques to the so called donors. 10. Since SIES had disclosed the said modus operandi during investigation before the investigation wing, the AO during a....