2017 (11) TMI 1627

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.... Before adverting to the merits of the issue, it is to be noted that assessee was formerly known as Capital Fortunes Financial Services Ltd., (at the time of filing of return of income). The assessment was completed on that name. The appeal before the Ld.CIT(A) was filed on 09-03-2015 in the name of Quintessentials and Corp Services Pvt Ltd., after change of name (the actual date of change is not on record). However, the present appeal by assessee was filed on 09-03-2017 in the name of M/s. Kamadhenu Sukrit Pvt. Ltd., and when enquired, filed the certificate from ROC about change of name from 18-11-2014 itself. This indicates that by the time appeal was filed before Ld.CIT(A), the present name change has happened. This should have been veri....

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....s also reflected in Profit & Loss Account. The assessee contended that none of the expenditures has any nexus to the Investment activity. This was not proved before me. I do not agree that no expenditure or efforts were spent to earn this Income. Returns/ Income may vary every year, hence has no relevance to the quantum of investment. Income is result of much thought and financial experiment. And it is this, that the law opines to recognize u/s 14A. Beside, as per facts- (1) The appellant is incorrect in showing that there is no non-taxable income during the year. (2) The source of investment of analysis has not been submitted. Hence, the 'Assessing Officer is correct in showing that there should be a 'cos....

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....ture incurred by Assessee is other expenditure at Rs. 7,79,500/- in Sch. 21. The details are as under: Particulars Figures as at the end of the Current Reporting Period Figures as at the end of the Previous Reporting Period   (Rs. In Hundreds) (Rs. in Hundreds) a) Business Promotion -- 11 b) Conveyance 955 743 c) Electricity Charges -- 116 d) General Expenses  -- 9 e) Irrecoverable Dues written off -- 5,000 f) Miscellaneous Expenses 220 159 g) Office Maintenance 1,267 1,140 h) Rates and Taxes 1,685 48,805 i) Legal and professional 500 1,82,153 j) Payments to auditors 83 83 k) Telephone charges 193 348 l) Travelli....

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.... interpretation of provisions of sec. 14A r/w rule 8D is leading to unanticipated absurdities which cannot be the intention of legislature. Under these circumstances help of external aids of construction for interpretation of statute is called for. Looking at the varying interpretation offered by various courts and benches of tribunal in relation to sec. 14A, it is quite arduous to precisely decide the issue. In given facts and circumstances without going into all the issues, in our view it is appropriate to take guidance from Chandigarh bench judgment in the case of Punjab State Co-opt Marketing Fed. Ltd. (supra) holding that the disallowance of expenditure in any case cannot exceed the income earned. In our view this judgment takes a holi....