2017 (2) TMI 949

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... 70,00,000/- u/s 14A of the Act. 3. Briefly stated the facts are that the assesse is a non-banking finance company and assessment was completed u/s 143(3) of the Act on 06/11/2009 determining the taxable income at Rs. 2,23,7660/-. The assessing officer while completing the assessment disallowed Rs. 81,30,631/- u/s 14A of the Act. The assessee preferred appeal before CIT(A) and CIT (appeals) by order dt. 24-05-2010 confirmed the said disallowance. Assessee preferred further appeal to this Tribunal and the Tribunal by order in ITA No. 5311/M/2010 dated 02-12-2011 restored back matter to the assessing officer for examining afresh. Consequential assessment order was passed on 30-03-2013 u/s 143(3) r.w.s 254 of the Act determining taxable in....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 6. The Ld. Counsel for the assessee submits that (out of total divided of Rs. 36.91 Crores) 99% of the dividend income of Rs. 36.56 Crore was received from JSW Steel Ltd.. Therefore, he submits that only because of single huge dividend received from JSW Steel Ltd, the apportionment of substantial of the expenditure for earning such exempt income is not correct. Ld. Counsel submits that assesse has not taken extra effort to realize the cheque of divided income. He further submits that all the above companies from which the dividend income is realized are from same group and therefore no extra effort is made in respect to receipt as well as realization of cheque from the said companies. 7. The Ld. Counsel for the assessee further submits....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....it compared to the quantum of huge divided earned by the assessee. 10. We have heard rival submissions, perused orders of the authorities below. The assesse is a non-banking finance company made investments in various companies and earned dividend income of Rs. 39,90,56,836/-. The assessee in the computation on income disallowed Rs. 3,39,184/- being the D Mat changes incurred as the expenses attributable for earning the dividend income. However, assessing officer taking note of the fact that the quantum of dividend is high, he made adhoc disallowance of Rs. 70,00,000/- u/s 14A of the Act which was confirmed by the Ld. CIT(A). Admittedly for this assessment year being assessment year 2007-08, the provisions of Rule 8D have no application.....