TaxTMI 
TaxTMI 
2017 (11) TMI 1683
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....risen before learned CIT(A) from the assessment order dated 28-03-2014 passed by learned Assessing Officer (hereinafter called "the AO") u/s 143(3) of the Income-tax Act, 1961 (hereinafter called "the Act"). 2. The grounds of appeal raised by the Assessee in the memo of appeal filed with the Income-Tax Appellate Tribunal, Mumbai (hereinafter called "the tribunal") read as under:- "Ground no. 1 On the facts and in the circumstances of the case and in law, the Hon'ble CIT(A), Mumbai, erred in confirming the disallowance made by the assessing officer amounting to Rs. 16,32,406/- under Section 14A of the Income Tax Act, 1961('the Act') read with Rule 8D of the Income Tax Rules, 1962. The appellant prays that the....
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....16,32,406/- was added back to the income of the assessee by the A.O vide assessment order dated 28.03.2014 passed u/s. 143(3) . 4. Aggrieved by the assessment order dated 28-03-2014 passed by the AO u/s 143(3), the assessee filed first appeal before the learned CIT(A). During the course of appellate proceedings ,the assessee submitted that assessee has suo-motto disallowed the sum of Rs. 34,692/- on account of expenditure incurred to earn exempt dividend income being Rs. 0.5% of salary of General Manager(Finance). The assessee contended that no expenses were incurred apart from Rs. 34,692/- to earn dividend income of Rs. 44,69,167/-. It was submitted that tax auditor of the assessee had also concurred with the view of the assesee that th....
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....46/Chd/2009) . The learned CIT(A) rejected the contention of the assessee and upheld the disallowance of 0.5% of the average value of investments as is contemplated u/r 8D(2)(iii) r.w.s. 14A. The learned CIT(A) relied upon the decision of the Hon'ble Delhi High Court in the case of Maxoop Investment Ltd. v. CIT 347 ITR 272(Del) to hold that investments in subsidiary companies/strategic investments shall also be included for the purposes of computing disallowance u/s 14A . The learned CIT(A) also observed that assessee has incurred personnel expenses to the tune of Rs. 92.25 crores, other/administrative expenses by the way of rent of Rs. 7.8 crores , rates and taxes to the tune of Rs. 4.44 crores and miscellaneous/administrative expenses to ....
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....no disallowance can be made u/s 14A. It is also submitted that for A.Y. 2010-11 , the tribunal has decided the issue vide ITA no. 4573/Mum/2014 vide orders dated 05.12.2016 in assessee's own case, wherein further disallowance of Rs. 50,000/- u/s 14A was upheld by the tribunal . The said orders of the tribunal are placed on record by the learned counsel for the assessee. The ld. DR on the other hand relied upon the order of the learned CIT(A)/AO . 6. We have considered rival contentions and we have perused the material on record including cited case laws and orders of the authorities below. We have observed that the assessee is engaged in the business of manufacturing of TV sets. It is also trading in certain FMCG . The assessee is also m....
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.... the year. The assessee has sold the investments during the year which comprised mutual fund which mainly led to fall in investments held by the assessee as at year end vis-a-vis held at the beginning of the year. The assessee has offered disallowance computed @0.5% of the salary of GM ( Finance) u/s. 14A . The tribunal in the preceding year i.e. AY 2010-11 has held further disallowance of Rs. 50,000/- towards administrative expenses will meet the end of the justice. The authorities below have not gone deeply into the accounts and affairs of the assessee to find out who all were responsible for handling investments and to identify the expenditure/cost incurred towards the earning of the exempt income . The authorities below did not call for....