2018 (6) TMI 603

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....isallowance of an amount of Rs. 140.19 lakhs made by the A.O. u/s 14A, as the assessee has claimed deduction of expenses in relating to income which is exempt from tax. 2. The appellant craves leave to add, alter or amend any of the grounds of appeal before or during the course of appellate proceedings before Hon'ble ITAT." 2. Facts of the case in brief: Assessee filed its return of income on 31.10.2006 declaring total income of Rs. 323,56,23,021/- which was processed u/s 143(1) of the Income Tax Act, 1961 (the Act) at the returned income and subsequently case was selected for scrutiny and notice u/s 143(2) was issued and assessment was completed u/s 143(3) on 30.11.2009 at an income of Rs. 355,10,00,239/- comprising disallow....

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....any for the purposes of computing disallowance u/s 14A r.w. Rule 8D. 3. Aggrieved by the order of Ld.CIT(A) assessee preferred appeal before this Tribunal. 4. Ld.DR placed reliance upon the order of Ld.AO and submitted that assessee is receiving relief u/s 90 r.w. DTAA with Oman at 30% on the dividend income received by PE from OMIFCO, Oman. 5. On the contrary Ld.AR placed reliance upon the orders of the Coordinate Bench of this Tribunal for A.Y. 2006-07, 2008-09 and 2009-10 wherein direction had been passed to Ld.AO to recompute the disallowance u/s 14A by excluding the investments made by assessee in OMIFCO, Oman. 5.1. Ld.AR has placed reliance upon a chart wherein the details of dividend received by assessee have been bifurca....

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....s of the AO. The Ld. AR submitted that the assessee being a Multi-State Cooperative Society incorporated in India, is resident in India in terms of Section 6 of the Act. In terms of Section 2(45) read with Section 5 of the Act dealing with scope of taxation, a resident is liable to tax in India in respect of global income, viz. income: (i) received or deemed to be received in India, (ii) income received outside India, (iii) income accruing or arising or deemed to accrue or arise in India, and (iv) income accruing or arising outside India. Thus, the Act provides for levying tax on global income of a person resident in India. The provisions of the Act, including Section 5, which provides for taxation of global income of a resident are "subjec....