TaxTMI 
TaxTMI 
2015 (1) TMI 1361
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....cts and in the circumstances of the case and in law, the Hon'ble CIT (A) erred in confirming the action of the Assessing Officer of disallowing a sum of Rs. 43,97,522/- as provision for leave encashment on the alleged ground that the provisions of section 43B(f) of the Act are directly applicable. 2. The appellant prays that the disallowance of aforesaid provision for leave encashment be deleted. Ground No.II: Disallowance u/s 14A r.w.r. 8D of 4,70,104/- 1. On the facts and in the circumstances of the case and in law, the CIT (A) erred in upholding the action of the Assessing Officer of disallowing a sum of Rs. 4,70,104/- allegedly as expenses (including interest) incurred towards earning exempt income u/s 14A of the Act r.w.r 8D of t....
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....8. The department is aggrieved, hence, has filed the aforementioned appeal. 3. At the outset Ld. AR of the assessee has produced before us a copy of order of the Tribunal dated 8/8/2012 in ITA No.6189/Mum/2011 in the case of Essar Exploration & Production India Ltd. vs. ACIT, order dated 8/8/2012, in which similar issue came up for consideration of ITAT. Before ITA reference was made to the aforementioned decision in the case of M/s. Universal Medicare Pvt. Ltd. vs. ACIT(supra), and after hearing both the parties and considering the issue that in another matter in the case of Exide Industries Ltd. vs. Union of India, 292 ITR 470 (Cal), where provisions of section 43B(f) were held to be arbitrary and in Special Leave Petition before Hon....
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....the case Ernst & Young Pvt Ltd. (supra) has restored the matter to the file of AC with a direction to adjudicate the same as per decision of Hon'ble apex Court in the case of Exide Industries Ltd (supra), In view of above and respectfully following the earlier decisions (supra), we set aside the orders of authorities below and restore the matter back to the file of AO for adjudication afresh as per the decision of Hon'ble apex Court in the case of Exide Industries Ltd (supra)." 3.1 Referring to the above observation it was pleaded by Ld. A.R that the matter may be restored back to the file of AO with similar directions. 4. Ld. D.R did not have any objection to such request of Ld. A.R. 5. In this view of the situation, after he....
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....Rs. 2,028.97 lakhs. It was submitted that in accordance with the decision of the Hon'ble Bombay High Court in the case of CIT vs. HDFC Bank (366 ITR 505) no disallowance on account of interest was called for. 5. On this issue, we have heard both the parties. Ld DR relied on the orders passed by the Assessing Officer and the CIT (A). It has been observed that assessee's investment in shares and securities from which assessee has earned tax free income is much less than the share capital and reserve and surplus. Therefore, the contention of the assessee is required to be accepted and it is held that no disallowance on account of interest was called for. Accordingly, addition of Rs. 2,69,620/- is deleted and disallowance is sustained only for....
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....eal with the following observation. "10. At the outset, the Counsel agreed that the question posed at paragraph 4(i), namely, the deduction claimed by the assessee on account of the provisions for warranty is concerned, that is fully covered in favour of the assessee and against the revenue by the judgment of the Hon'ble Supreme Court in the case of Rotork Controls (P) Ltd (supra). The appeal, therefore, does not raise any substantial question of law in relation to this deduction." 9. Later on the aforementioned decision was followed by the Hon'ble High Court in respect of the AY 2006-2007 vide order dated 25.7.2014 in Income Tax Appeal No.535 of 2012. Copy of this order is placed at page 139 and 140 of the paper book. 10. In this view ....