TaxTMI 
TaxTMI 
2017 (5) TMI 1218
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....ROI filed on Returned Income Assessment dt. Assessed Income 2009-10 25/09/2009 Nil 30.12.2011 Rs.95.71 lakhs 2011-12 30/09/2011 Rs.83,69,89,820/- 31.01.2014 Rs.1.48 lakhs ITA No.2096/Mum/2013-AY.09-10: 2.First effective ground of appeal(GOA-2) is about considering a sum of Rs. 20.59 lakhs on account of interest from bank as income from other sources instead of income from business. During the assessment proceedings, the AO found that the assessee had shown income of Rs. 44.48 lakhs (Rs. 24.28 lakhs under the head dividend income and Rs. 20.59 lakhs under the head interest from Federal bank on FDR.s), that it had claimed expenses under various heads. He observed that the assessee had not carried o....
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....had rightly decided the issue by relying upon the Judgements of the Honorable Supreme Court that income earned from dividend claimed as exempt was also rightly treated under the head income from other sources. Finally, he upheld the order of the AO. 2.2.During the course of hearing before us, none appeared on behalf of the assessee, as stated earlier. The Departmental Representative (DR) supported the order of the FAA. As nothing has been brought on record to prove that the assessee was in the business of earning interests from fixed deposits, so, we do not want to disturb the finding of the FAA. 3.Next ground deals with disallowance made u/s.36(1)(iii) of the Act,amounting to Rs. 23.55 lakhs. During the assessment proceedings,the AO ....
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....ing of the FAA. Therefore, confirming his order we dismiss Ground No.3. 4.Fourth ground pertains to disallowance made under the heads salary and conveyance of Rs. 1.02 lakhs. During the assessment proceedings, the AO noticed that the assessee had shown administrative expenses Rs. 1.76 lakhs including salary (Rs.60,000/-) and conveyance charges (Rs.42,670/-). Considering the fact that during earlier year the assessee had not claimed such expenditure and the supporting evidence were not furnished the AO disallowed 50% of the expenses(Rs.51,335/-) and added it back to the income of the assessee. 4.1.During the appellate proceedings, the FAA observed that the AO had given specific opportunity to the assessee to submit complete bills and v....
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....proceedings the assessee had filed papers without any evidence of use of the assets for the business,that it had failed to submit to substantiate its claim. Finally,he upheld the order of the AO. As nothing has been produced before us that could lead to the conclusion that decision of the AO/FAA is factually legally incorrect, therefore we dismiss 5ground, raised by the assessee. 6.Next ground is about addition made u/s.14A of the Act,of Rs. 73,705/-. During the assessment proceedings the AO found that the assessee had received dividend income of Rs. 24.28 lakhs. He issued a show cause notice to it to explain as to why the disallowance under section 14A read with rule 8D of the income tax rules, 1962,should not be made.After considering ....
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....assessee. 7.1.The FAA, after considering the available material, held that the assessee had shown interest payable at Rs. 1.43 crore on the loans received in the earlier years, that the amount was claimed as expenses payable on unsecured loans but not made, that it was claimed, that it was claimed as expenses of the earlier years, in response to the specific query of the AO,the assessee did not file complete details with confirmation,that it had submitted some photocopies without name and address of the parties,that the so-called confirmations were filed without any supporting evidences,that the assessee had stopped its business and liability is had been shown on account of interest payable for the last for many years which was not paid ....