TaxTMI 
TaxTMI 
2014 (9) TMI 1099
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....rder of the ld. CIT(A) 21, Mumbai pertaining to assessment years 2006-07 & 2007-08. Since common issues are involved in these appeals, they were head together and dispose of by this common order for the sake of convenience and brevity. ITA NO. 1614/Mum/2011 (Revenue's appeal for A.Y. 2006-07). 2. The Revenue has raised seven substantive grounds of appeal. Ground No. 1, 2 & 3 relates to the deletion of the addition made u/s 14A read with Rule 8-D of the Income Tax Rules, 1962. 3. Admittedly, the A.O. has computed the disallowance u/s 14A read with Rule 8-D. It is a settled law that Rule 8-D is applicable from A.Y. 2008-09, hence, not applicable for the year as held by the Hon'ble Bombay High Court in the case of Godrej and Boyce Mfg....
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....allowed. 6. Ground No. 6 relates to restricting the disallowance on account of administrative and managerial expenditure at 5% of the exempt income. 7. The ld. CIT(A) has considered this issue at para No. 2.3 (g) of his order wherein he has followed the decision of the Tribunal in assessee's own case for A.Y. 2005-06. We have carefully perused the order of the Tribunal in assesse's own case in ITA No. 1090/Mum/2009 order dtd. 8-10-2010. The Tribunal at para 8 of its order has confirmed the disallowance on account of administrative and managerial expenses u/s 14A of the Act to the extent of 5% of the total exempt income. Respectfully following the findings of the Tribunal, the ld. CIT(A) has restricted the disallowance. We, therefore, ....
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....come. We, therefore, do not find any reason to interfere with the findings of the ld. CIT(A). Ground No. 3 & 4 of the assessee's appeal are accordingly dismissed. 14. Ground No. 5 relaters to the computation of book profit u/s 115JB of the Act. In our considered opinion, this grievance of the assessee is consequential, therefore, we direct the A.O. to re-compute the book profit u/s 115JB of the Act after giving the appeal effect to our decision. Ground No. 5 is accordingly allowed for statistical purpose. 15. Ground No. 6 relates to the disallowance of Rs. 1,16,125/- being amortization of premium paid for leasehold land. We find that identical issue was decided by the Tribunal in assessee's own case for A.Y. 2005-06 in ITA No. 1090/Mu....
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.... the same reason, ground No. 1 & 2 are dismissed. 23. Ground No. 3 also relates to the disallowance computed as per Rule 8D. We have decided this issue against the Revenue holding that Rule 8-D is applicable from A.Y. 2008-09, hence, ground No. 3 is accordingly dismissed. 24. Ground No. 4 & 5 relates to the disallowance of in-direct expenditure. In Revenue's appeal for A.Y. 2006-07, we have confirmed the findings of the ld. CIT(A) who has followed the order of the Tribunal in assessee's own case in ITA No. 1090/Mum/2009 by which the Tribunal has restricted the disallowance to 5% of the total exempt income. Respectfully following the same, these grounds are dismissed. 25. Ground No. 6 relates to the adjustment to be made for computi....
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....om M/s Godrej Beverages Pvt. Ltd. Accordingly, the net investment was at Rs. 103.69 crores. A perusal of the fund flow/cash flow statement show that the assessee had profit on sale of investments at Rs. 44.92 crores. Net profit during the year was at Rs. 6.20 crores and net sale proceeds from investments were at Rs. 34.43 crores and opening balance of cash and bank was at Rs. 12.59 crores. Thus total own funds available with the assessee was at Rs. 98.15 crores. The assessee has purchased fixed assets of Rs. 37.02 crores which is out of loan funds taken during the year thereby leaving the assessee net own funds of Rs. 98.14 crores. The investment made during the year is at Rs. 103.69 crores which means that Rs. 5.55 crores have been investe....