TaxTMI 
TaxTMI 
2017 (3) TMI 1463
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.... investments in shares, the income of which is exempt from tax. The assessee strongly contended that it is having sufficient interest free funds for making investment in equity shares. Though, this contention was primarily accepted by the A.O. but he was of the opinion that the assessee failed to provide nexus of investments made in equity shares out of interest free funds. The A.O. was of the firm belief that the mandate of Section 14A is to disallow and expenditure directly or indirectly incurred in relation to the exempt income which is claimed against the income taxable. The A.O. accordingly computed the disallowance u/s. 14A read with Rule 8D and disallowed Rs. 12,80,892/-. 5. The assessee carried the matter before the ld. CIT(A) but without any success. 6. Before us, the ld. counsel for the assessee reiterated what has been stated before the lower authorities. The ld. D.R. strongly supported the findings of the revenue authorities. 7. After giving a thoughtful consideration to the order of the authorities below. We find that there is no dispute that the assessee was having sufficient interest free funds available with it for making the investments in shares. It is eq....
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....respect of the project Aantarkshitij scheme in October 2009 to arrive at the rate on which the balance of the lands sold during the year. The above contention of the Assessing Officer is not right. There is no doubt that the appellant had charged on money on the land transactions prior to the search. However for determining the on money charged after the search the 'Assessing Officer was not justified in taking the highest rate of land' sold in October -2009 and over and above that rate adding a sum of Rs. 373.65 per square yard. For calculating the average on money rate the Assessing Officer has considered the average of entire sales hence he cannot take the highest rate for determining the rate of sales of the remaining plots. It is also seen that the average sale rate recorded for the entire plots is Rs. 2,169/- per sq. yard. The highest rate is Rs. 2,813/- per sq. yard in October, 2009 and the lowest rate is Rs. 3,586/- per sq. yard in April, 2009. It is seen that the average rate of. the lands sold during September 2009 is Rs. 24137- per square yard and the average rate in August is Rs. 2420/- per square yard and the average rate in July 2009 is 1600/- per square yard.....
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....e A.O. was incomplete possession of all the details in respect of all the persons who had booked/purchased flat after 06.10.2009. There is not even a single piece of evidence to show that any enquiry was made by the A.O. from these purchasers. We find further that all the sales were made at Jantry rate . 19. In our understanding of the law, the assessing authority has no power to disturb the sale price shown except in three cases. The first is under Section 145 of the Act. Where the sale of properties is part of the business of the assessee, the Assessing Officer, if he is of the opinion that the accounts are not correct and complete, may proceed to reject the books of accounts and thereafter make a best judgment assessment of the income in the manner prescribed by Section 144. The second is the case where Section 50C of the Act is invoked on the basis of the prices fixed by the Stamp Valuation Authorities of the State Government. The third is the case of Section 92BA inserted by the Finance Act, 2012 w. e. f. 01.04.2013. This section gives power to the assessing officer to recalculate the profits shown by the assessee in cases of "specified domestic transactions" where the aggrega....
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.... No. 943/Ahd/2013 Revenue's appeal for A.Y. 2010-11 26. Revenue has raised two substantive grounds of appeal. Ground no. 1 relates to the deletion of the disallowance of interest of Rs. 9,07,942/- made u/s. 36(1)(iii) of the Act and Ground no. 2 relates to the restriction of the addition made on account of undisclosed on money to Rs. 25,25,655/- out of total Rs. 1,01,63,640/-. 27. Ground no. 2 is dismissed qua our detailed discussion given in allowing ground no. 2 of assessee's appeal in ITA No. 693/Ahd/2013 (supra). 28. This leaves with only grievance of the revenue relating to the deletion of the disallowance of Rs. 9,07,942/-. 29. During the course of the scrutiny assessment proceedings, the assessee was asked to explain the interest expenditure claimed u/s. 36(1)(iii) of the Act and to justify the reasonableness of the interest charged on the advances given during the course of its business. After perusing the detailed submissions of the assessee, the A.O. was of the opinion that the assessee has given advances at a rate lower than the average rate of the three assessment years which works out to 14.94% and since the assessee has given interest bearing advances at a....
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....ALA PARK, JODHPUR TEKRA, AHMEDABAD "NANDI HILL " JASWANTLAL BIDIWALA PARK, JODHPUR TEKRA, AHMEDABAD "NANDI HILL" JASWANTLAL BIDIWALA PARK, JODHPUR TEKRA, AHMEDABAD "NANDI HILL", JASWANTLAL BIDIWALA PARK, JODHPUR TEKRA, AHMEDABAD ACRPP3751C AATPP8013D AATPP8013D ACRPP3751C ACRPP3751C AATPP8013D Document 2 PHASES 0176 NILAMBARICSHETH B-40,ARYAMAN BUNGLOWS, AIJPS6137R OPP; ANAND NIKETAN SCHOOL NEAR THALTEJ RAILWAY CROSSING, AHMEDABAD PHASES 0118 MONAL DHANVIN. PUJ 201, AKASH SAGAR FLAT, AMYPP1788L PANCHVATI IIND LANE, BEHIND MONALISHA, AMBAWADI, AHMEDABAD PHASES 0147 SATISH VORA B/24, SHALIGRAM - 3, PRAHLADNAGAR, ABAPV4346F PHASES 0116 ATULJASVANTLALSHAH PHASES 0117 |JASHWANTLAL G. SHAH SATELLITE, AHMEDABAD B/204, VRAJ VIHAR - 4, OPP. ACIPS7564F CHANDAN PATY PLOT, JODHPUR, SATELLITE, AHMEDABAD 301, KRISHNA TOWER, PARTHSARTHI PLAITS, NR. SHYAMAAL RAW HOUSE II, SATELLITE 132 FT RING ROAD, AHMEDABAD AACCN6152D PHASES 0119 VINODCHANDRA S. THAKKAR 20, VRUNDAVAN PHASES 0157 JAYANTKUMAR M. PANDYA PHASE UNIT NA....