TaxTMI 
TaxTMI 
2017 (12) TMI 910
X X X X Extracts X X X X
X X X X Extracts X X X X
....on employee's contribution to PF which was deposited beyond the prescribed time limit provided in the respective Acts. 2. Whether on the facts and in the circumstances of the case and in law the ld. CIT(A) has erred in deleting the entire addition of Rs. 2,80,75,585/- made by the AO under section 14A of the I.T. Act, 1961 r.w. clauses (ii) & (iii) of Rule 8D which was in consonance with CBDT Circular 5/2014 dated 11.02.2014. 3. Whether on the facts and in the circumstances of the case and in law the ld. CIT(A) has erred by relying upon the decision of Hon'ble Rajasthan High Court in the cases of CIT Vs. JVVNL {2014} 99 DTR 131 (Raj.) and CIT V/s SBBJ on the very same issue whereas, the department has filed SLP against thes....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e decision in assessee's own case (supra). Accordingly we do not find any error or illegality in the impugned orders of the ld. CIT(A) qua this issue. 4. Ground No. 2 is regarding disallowance made by the AO u/s 14A r.w. Rule 8D which was deleted by the ld. CIT(A). 5. We have heard the ld. DR as well as ld. AR and considered the relevant material on record. The Assessing Officer made the disallowance on account of interest expenditure u/s 14A r.w. Rule 8D. The assessee challenged the action of the AO before the ld. CIT(A) and contended that the assessee's own fund are sufficient to make this investments resulting exempt income. The ld. CIT(A) deleted the addition made by the AO by following the decisions of this Tribunal in assessee's....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the Act is proof of the fact that the expenditure sought to be disallowed/deducted had actually been incurred in earning the dividend income. Insofar as the Appellant-Assessee is concerned, the issues stand concluded in its favour in respect of the Assessment Years 1998-1999, 1999-2000 and 2001-2002. Earlier to the introduction of Subsections (2) and (3) of Section 14A of the Act, such a determination was required to be made by the Assessing Officer in his best judgment. In all the aforesaid assessment years referred to above it was held that the Revenue had failed to establish any nexus between the expenditure disallowed and the earning of the dividend income in question. In the appeals arising out of the assessments made for some of the a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....arlier prevailing, would become applicable. 38. In the present case, we do not find any mention of the reasons which had prevailed upon the Assessing Officer, while dealing with the Assessment Year 2002- 03, to hold that the claims of the Assessee that no expenditure was incurred to earn the dividend income cannot be accepted and why the orders of the Tribunal for the earlier Assessment Years were not acceptable to the Assessing Officer, particularly, in the absence of any fact or change of circumstances. Neither any basis has been disclosed establishing a reasonable nexus between the expenditure disallowed and the dividend income received. That any part of the borrowing of the Assessee had been diverted to earn tax free income des....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ndamental aspect permeating through the different assessment years then consistency of the position taken by the parties to be maintained. The issue of incurring any expenditure in respect of the income not forming part of the total income is a factual aspect has to be examined independently in each assessment particularly when there is variation in the nature of expenditure as well as the change in the investment made by the assessee. We find that neither the Assessing Officer nor the ld. CIT(A) has examined the relevant facts for adjudicating this issue of disallowance of u/s 14A r.w.r 8D. Neither the nature of expenditure nor the fresh investment during the year has been specifically examined and considered by the authorities below. Howe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t of administrative expenditure which can be allocated to the exempt income then in the absence of finding of the AO to identify a particular expenditure which could be allocated for earning the exempt income no disallowance is called for. However, this principal can be applied only when the relevant facts are brought on record and to be considered for ascertaining the facts of incurring the expenditure in respect of earning the exempt income. Neither the Revenue nor the assessee has filed any material on record before us to give a conclusive finding on the availability of the assessee's own fund to meet the requirements of the fresh investment made by the assessee during the year as well as the expenditure claimed by the assessee which can....