2017 (11) TMI 1152

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ssment Years 2008-09 and 2009-10 respectively. 2. Ground No.1 & 2 of the grounds of appeal of the assessee relates to partly upholding the action of the Assessing Officer in making disallowance u/s. 14A r.w. Rule 8D of the Act. Learned Counsel for the assessee submits that during the Assessment Years 2008-09 & 2009-10 assessee received dividend income of Rs..40,129/- and Rs..11,51,440/- respectively and assessee itself disallowed 10% of the said dividend income suomoto in the return of income being the expenditure attributable for earning said exempt income. The Learned Counsel for the assessee submits that Assessing Officer however computed the disallowance u/s. rule 8D at Rs..17,42,373/- and Rs..14,46,875/- which comprises of the follo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....M/s.Beekaylon Synthetics Pvt. Ltd. v. ACIT in ITA.No.2459/MUM/2015 dated 11.07.2017. 5. Ld.DR vehemently supported the authorities below. 6. We have heard the rival submissions, perused the orders of the authorities below, case laws relied on. The contention of the Learned Counsel for the assessee that own funds are much more than the investments made which yielded exempt income appears to be true as the shareholders' funds i.e. capital, reserves and surplus as on 31.03.2008 stood at Rs..71.95 Crores and whereas the investments stood at Rs..10.07 Crores out of which dividend yielding investments were around Rs..7.5 crores. We observe that secured loans are for the purpose of the working capital and vehicles. Similarly, the shareholder....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....on 115-O and therefore investments in domestic companies ought not to be included for this computing disallowance u/s.14A of the Act. 8. Learned Counsel for the assessee fairly concedes that this issue is decided against the assessee by the Supreme Court in the case of Godrej & Boyce Manufacturing Company Ltd. Thus, this ground of appeal is decided against the assessee and is dismissed. In view of the submissions of the Learned Counsel for the assessee we dismiss this Ground No. 3. 9. Coming to Ground No. 4. The issue is in respect of confirmation of action of the Assessing Officer that the disallowance made u/s. 14A should be added while computing the total income as per the book profits u/s. 115JB of the Act. 10. The assessee in ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....spect of the addition made u/s. 145A of the Act. It was contended by the Learned Counsel for the assessee that previous year's closing stock has not been taken as forming part of current year's opening stock and made addition by the Assessing Officer. Learned Counsel for the assessee submits that the Ld.CIT(A) confirmed stating that no details were filed. 14. Learned Counsel for the assessee before us submitted that the method of valuation of stocks as forming part of Tax Audit Report and referring to Point No. 5 submits that during the year the company has complied with the requirements of the Guidance Note issued by the Institute of Chartered Accountants of India [ICAI] with respect to the provisions of section 145A. If the company had....