2014 (8) TMI 1142

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....following two grounds: "1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition the penalty levied by Stock Exchange of Rs. 1,53,613/- and Rs. 23,21,347/- being VSAT/lease line charges. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition of provision for loss on mark to market on derivative of Rs. 2,21,49,882/-." 3. At the very outset, the Ld. Counsel for the assessee stated that both grievances of the Revenue are covered in favour of the assessee by the decision of the Hon'ble Jurisdictional High Court and by the order of the Tribunal. 4. The Ld. Departmental Representative fairly conceded to this. 5. We have carefully per....

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.... considered the issue at para-5 of its order and at para-8, the Tribunal followed the findings of ITA No. 5324/M/07 and at para-9 considered Instruction No. 3/2010 of CBDT dt. 23.3.2010 and confirmed the findings of the Ld. CIT(A). We find that the Ld. CIT(A) has followed the decision of the Tribunal in ITA No. 5324/M/07. As no distinguishing fact/decision has been brought before us, we do not find any reason to interfere with the findings of the Ld. CIT(A). This ground of the Revenue is dismissed. 9. In the result, the appeal filed by the Revenue is dismissed. ITA No. 7235/M/2011 - Assessee's appeal 10. First grievance of the assessee relates to the disallowance u/s. 14A r.w. Rule 8D of the I.T. Rules. 11. During the course of the scr....

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....t the amount of disallowance for the purpose of Sec. 14A has to be determined as per Rule 8D and accordingly confirmed the disallowance made by the AO. 14. Aggrieved by this, the assessee is before us. 15. The Ld. Counsel for the assessee drew our attention to the financial statement of the assessee and pointed out that the assessee is having sufficient own funds to cover up the investments. Further the incremental loan during the year has gone down. It is the say of the Ld. Counsel that considering the financials of the assessee, no borrowed fund has been utilized for earning exempt income. 16. Per contra, the Ld. Departmental Representative supported the findings of the Revenue authorities. 17. We have carefully perused the orders of ....

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....sessee should suffice the mandate of provision of Sec. 14A of the Act. No further disallowance is required. We, accordingly, set aside the findings of the Ld. CIT(A) and direct the AO to delete the disallowance made u/s. 14A of the Act read with Rule 8D. First grievance of the assessee is allowed. 18. The second issue relates to the disallowance of bad debts of Rs. 16,94,140/-. 19. This issue has been discussed by the AO at Para-8 on page 22 of his order. Applying the provisions of Sec. 36(1)(vii) r.w. Sec. 36(2) of the Act, the AO came to the conclusion that such bad debts cannot be allowed. 20. The assessee carried the matter before the Ld. CIT(A) and it was pointed out that out of the total write off of Rs. 16,94,140/-, Rs. 15,45,548/....