2017 (2) TMI 1368

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....substantive grounds: 2.1 The Ld. CIT(A) has erred in confirming the addition of principal portion of lease rent as income of the appellant. 2.2 The Ld. CIT(A) erred in confirming the disallowance of expenditure relating to earning the dividend in accordance with Rule 8D. In respect of the facts that the investment were made out of expenditure and could be deducted from tax. 3. The Brief facts of the case that the assessee is a non-banking financial company engaging in business of bill discounting, hire purchase and leasing, mutual funds and insurance agency and filed the Return of income for the assessment year 2011-12 on 26.09.2011 with total income of Rs. 1,18,80,275/-, which was processed u/s. 143(1). Subsequently, n....

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....e in TC Appeals 124 to 130/2014 for the assessment year 2002-03 to 2008-09, where the lordship have dismissed the tax appeals and the same is binding on the assessee and CIT(A) has dismissed the assessee's ground Aggrieved  by the order, assessee filed appeal before the Tribunal. Before us, Ld. AR argued the grounds and on the accounting aspects and AS -19. We find the issue is squarely covered against the assessee and uphold the order of the CIT(A). 5. In the second ground, the Ld. AO found that the assessee company has dividend income of investment Rs. 6,03,575/-and claimed exemption u/s. 10(34)of the Act. But the assessee has not disallowed the proportionate expenditure u/s. 14A of the Act and filed submissions in letter date....

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....ders of the lower authorities and opposed the grounds. 7. We heard the rival submissions, perused the material on record and judicial decisions cited. The Ld. AR's contention that the assessee has received dividend income without incurring any expenditure and since no expenditure has incurred and disallowance is not warranted. Whereas ld AO has worked out the disallowance at Rs. 1,55,880/-. 8. We have heard the parties and perused the material on record. The expenditure incurred, and which may therefore be disallowed u/s. 14A r/w r. 8D, is direct or indirect expenditure. The assessee's argument of the investments being made much earlier to the current year, has implication only with regard to their financing cost, i.e., intere....