AI Drafter 
TaxTMI 
TaxTMI 
2018 (9) TMI 947
X X X X Extracts X X X X
X X X X Extracts X X X X
....ated order is being passed for the sake of convenience and brevity. ITA No. 2891/Mum/2016 (AY 2012-13) 3. First of all we take up assessee's appeal in ITA No. 2891/Mum/2016 for assessment year 2012-13 as lead case. The ground of appeal are mentioned herein below:- 1. On the facts and in the circumstances of the case and in law the CIT (A) erred in confirming the disallowance under sec. 14A read with Rule 8D of the Income Tax Act under normal provisions of the computation of Income under the Act. 2. The Appellant craves leave to add alter or modify any ground of appeal at or before the date of hearing. 4. As per the facts of the present case, the assessee company is engaged in the business of manufacturing of allie....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... We have heard counsels for both the parties at length and we have also perused the material placed on record as well as the orders passed by revenue authorities. We find that the identical ground raised in the present appeal had already been decided by the Coordinate Bench of Hon'ble ITAT in assessee's own case in ITA No. 2538 & 2539/Mum/12, 6888/Mum/13 & 961/Mum/15 for AY 2008-09 to 2011-12on merits. The operative portion of the order of Hon'ble ITAT is contained in para no. 7 to 14 and the same is reproduced below:- 7. We have considered rival contentions and carefully gone through the orders of the authorities below. From the record, we found that during the course of scrutiny assessment, AO made an addition of Rs. 47,52,634/-....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ee, AO should go for computation as per Rule 8D. 9. From the record we found that method adopted by assessee for disallowance u/s.14A is consistent method which was also followed in earlier years as decided by AO u/s.143(3) of the IT Act. The method so followed by the assessee takes into account all the administrative expenses which could have been incurred to earn the exempt income. We also found that for A.Y.2008-09 & 2009-10 AO has not recorded any satisfaction for invoking Rule 8D and for A.Y. 2010-11 & 2011-12 not recorded any objective satisfaction. 10. We also found that dividend from Mutual Fund as a percentage of total dividend income as under:- A.Y.2008-09 85.57% A.Y. 2009-10 89.26% A.Y.2010-11 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cements Section 14A read with Rule 8D is not applicable to investments which have not yielded any exempt income. Hence, while computing Rule 8D such investments must be excluded. 13. Keeping in view the totality of facts and circumstances of the case and applying the proposition of law laid down by Hon'ble Bombay High Court, part of which has been affirmed by the Hon'ble Supreme Court, we restore the matter back to the file of the AO for deciding afresh the disallowance warranted under Rule 8D having regard to the guidelines laid down by the Hon'ble Supreme Court in the case of Godrej And Boyce Mfg. Co. Ltd., in its order dated 08/05/2017. We direct accordingly. 14. Similar grounds have been taken in all the four years und....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd in law the Id. CIT(A) is right in deleting the addition of Rs. 66,09,577/- made by AO u/s. 14A r.w.r. 8D(2) to the total income of the assessee u/s. 115JB of the I.T. Act." 2. "On the facts of the case and in law the Ld. CIT(A) erred in appreciating the fact that the Hon'ble ITAT 'D' Bench in the case of RBK Share Broking Pvt. Ltd. - 37- taxman 128 (2013) has held that the provisions of section 14A r.w.r. 8D is applicable for computation of book profit u/s 1153B of the Act." 3. "The appellant prays that the order of CIT(A) on the above ground be set aside and that of the Assessing Officer be restored." 4. "The appellant craves leave to amend or alter any ground or add a new ground which may be neces....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion 115JB(2), is to be made without resorting to the computation as contemplated u/s.14A read with Rule 8D of the Income Tax Rules, 1962. 17. In view of the decision of the Special Bench, we direct the AO to recompute the income u/s.115JB(2) with reference to the disallowance sought u/s.14A r.w.r.8D, in terms of the detailed discussion in the order of the Special Bench in the case of Vireet Investment Pvt. Ltd., in ITA No.502/Del/2012 dated 16/06/2017. We direct accordingly. 18. As the facts and circumstances in all the years under consideration are same, we direct the AO to recompute the income u/s.115JB in terms of our above discussion, following the proposition laid down by Special Bench of the Tribunal in case of Vire....