TaxTMI 
TaxTMI 
2018 (6) TMI 283
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....r s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") dated 29/01/2016 relevant to Assessment Year (AY) 2013-14. 2. The grounds raised by the Revenue per its appeal are as under: "That the ld. CIT(A) erred in law and on facts in deleting the addition of Rs. 92,52,234/- made on account of disallowance u/s. 14A r.w.r. 8D of the Act." On the fact and in the circumstances of the case and in law, the CIT(A) ought to have upheld the order of the Assessing Officer to the extent mentioned above since the assessee has failed to disclose his true income/book profit. The appellant prays that the order of CIT(A) on the above grounds be set aside and that of the Assessing Officer be restored to the a....
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....68,52,853/- 3. Administrative Expenses 29,28,224/- Total 97,81,077/- Accordingly, the AO disallowed the remaining amount of Rs. 92,52,234/- after adjusting the amount of Rs. 5,28,843/-, which was already disallowed by the assessee in its computation of income. The amount disallowed u/s 14A r.w.r. 8D for Rs. 92,52,234/- was added to the total income of the assessee. 5. Aggrieved assessee preferred an appeal to Ld. CIT(A) who has deleted the addition made by the AO by observing as under: "2.3. I have carefully considered the Assessment Order and the submission filed by the Appellant. The Assessing Officer has made disallowance under section 14A r.w.r. 3D of the I.T. Act and similar disallowance was made....
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....many decisions in his favour (supra) to substantiate his stand. I found considerable force in this contention of the appellant Neither the AO nor the appellant has established the nexus between the funds and the Investments, In these circumstances, in the interest of natural justice and in absence of clear cut finding by AO with regard to the nexus, the disallowance should be restricted to the exempt income. Hon'ble ITAT, Mumbai had an occasion to deal with such an issue in case of Daga Global Chemicals Pvt. Ltd. Vs. ACIT (ITA No.5592/Ahd/2012)(dtd.01.01.2015) in which it was held that the disallowance u/s 14A r. w. r. 8D cannot be made in excess of exempt income. Hon'ble Ahmedabad ITAT in the case of Chudgar Ranchodlal Jethalal v/s DCI....
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....penses was disallowed by the A.O and the disallowance was confirmed by ld. CIT(A) by following his predecessor order for A.Y. 07-08. Against the order of CIT(A) for A.Y. 07-08, Assessee had preferred appeal before Hon'ble ITAT. We find that the Co-ordinate Bench of Tribunal in ITA NO. 1008/AHD/2011 for A.Y. 07-08 (order dated 04.04.2014) decided the issue in favour of Assessee by holding as under:- 1. Learned CIT(A) has erred in law and in facts in confirming action of AO in disallowing Rs. 5,38,121/-, being weight shortage expenses. Both the lower authorities erred in ignoring the evidences produced by the appellant in the form of correspondences with the parties and debit notes issued by the parties. Ld. CIT(A) ought to have dele....