2016 (9) TMI 1323

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.... Tribunal was justified in law in restricting the disallowance of expenses incurred in relation to earning of exempt income at 1% of the administrative expenses, by relying on the decision of this Court in the case of Godrej and Boyce Mfg. Co. Ltd. [2010] 328 ITR 81 (Bom.) without appreciating that expression used in the judgment was 'reasonable basis' and not adhoc estimation basis as done by the Tribunal? (b) Whether the Tribunal was justified in law in confirming the decision of CIT(A) in deleting the disallowance of depreciation in respect of underlying assets, without appreciating that the lease transactions were transactions of finance/loan only? (c) Whether on the facts and circumstance of the case and in la....

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.... be disallowed under Section 14A of the Act on the reasonable basis as the Assessment Year involved was prior to Assessment Year 2008-09. (ii) Mr. Kotangle, learned Counsel appearing for the Revenue states that an identical issue raised in Income Tax Appeal No. 281 of 2014 for Assessment Year 1999-2000, has been admitted. Thus, this question also warrants admission. (iii) We note that in the Revenue's appeal being Income Tax Appeal No.281 of 2014 relating to Assessment Year 1999-2000, the aforesaid question with regard to disallowance under Section 14A of the Act was admitted on completely different facts. In that case, the Respondent-Assessee itself had during the assessment proceedings claimed a specifiec amount (whi....