TaxTMI 
TaxTMI 
2017 (2) TMI 649
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....appeal with the following proposed questions of law :- "[A] Whether the ITAT has erred in fact and in law in deleting the disallowance made by the AO on account of proportionate interest and administrative expenses of Rs. 25,41,310/-? [B] Whether ITAT has erred in fact and in law in deleting the addition made by the AO on account of unutilized modvat/cenvat credit of Rs. 56,08,089/-? [C] Whether the ITAT has erred in fact and in law in deleting the addition made by the AO on account of project loss of Rs. 7,49,000/- in relation to amount receivable from Mahanagar Gas Ltd.?" 2.00. That the assessee filed its return of income for the A.Y. 2005-06 declaring total income of Rs. 108,15,96,445/-. While processing the assessment under secti....
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....sessee had already suo-motu made disallowance at Rs. 6 Lacs, the learned CIT(A) held that the balance amount of Rs. 4,54,333/- be disallowed under section 14A of the Act. The learned CIT(A) also directed to delete addition of Rs. 56,08,089/-made by the A.O. on account of unutilized modvat/cenvat credit. The learned CIT(A) also directed to delete addition made by the A.O. on account of project loss of Rs. 7,49,000/- in relation to amount receivable from Mahanagar Gas Ltd. 2.05. Feeling aggrieved and dissatisfied with the order passed by the learned CIT(A), revenue preferred appeal before the learned tribunal and the learned tribunal considering its earlier decision in the case of very assessee for the A.Y. 2004- 05, confirmed the order pass....
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....the proportionate interest at Rs. 8,84,372/-. However, it is required to be noted that the assessee was already having enough fund for investment in tax free security and therefore, the learned CIT(A) directed to delete disallowance at Rs. 8,84,372/- made on account of proportionate interest. The same has been confirmed by the learned tribunal. It is required to be noted that similar disallowance in the case of the very assessee for the A.Y. 2004-05 and the same has attained finality. The aforesaid has also been considered by the learned tribunal while passing the impugned judgement and order. 3.02. Now, so far as the disallowance of administrative expenses is concerned, the learned CIT(A) has made reasonable estimation at 2% of the exempt....