2016 (7) TMI 1400

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....mining the income of the assessee  at Rs. 36.26 crores. ITA/2189/M/12: 3.Effective Ground of appeal raised by the AO is about deleting the disallowance of unascertained expenditure being reward points against the current year's sales.During the course of hearing before us it was brought to our notice that similar question arose in the appeals of the earlier year and the Tribunal had decided the issue in favour of the assessee  while deciding the appeals for the AY.2003-04&07-08(ITA/No.1835/Mum/ 2010,dt.25.1.2012 & ITA/5460/ Mum /2010,dt.24.2.12). We find that while deciding the appeal for the AY.2003-04 the Tribunal had held as under :- "11.We fully agree with the aforesaid findings of the Commissioner (Appeals).The....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ares, that the value of investment as on 31.3.2008was Rs. 80.72 crores,that it had claimed interest expenditure of Rs. 11. 23 crores.He directed the assessee to explain as to why disallowance u/s.14A r.w.Rule 8D of the Income tax Rules,(1962)should not be made.The assessee submitted that it had sufficient own funds and there was no justification for making disallowance u/s.14A.However, the AO did not agree with the assessee and made an addition of Rs. 1.50crores [Rs.1.18 u/r 8D (ii) + Rs. 32.40 lakhs u/r 8D(iii)] . 5.Aggrieved by the order of the AO the assessee preferred an appeal before the First Appellate Authority(FAA)and contended that during the year under appeal it had made investment of Rs. 31.81 crores out of the interest free s....