2018 (11) TMI 383

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..... 2. First we take up the appeals of the Revenue in ITA.No. 952, 954 & 955/Mum/2017 for the Assessment Years 2008-09, 2010-11 & 2011-12 as the issues are common. 3. Identical and common grounds have been raised by the Revenue in these appeals which are as under: - "1. "On the facts and in the circumstances of the case and in law, Ld. CIT(A) erred in setting aside the assessment made u/s 153(A) r.w.s 143(3) of the Income Tax Act, 1961 by relying upon the decision of ITAT, (S.B), Mumbai in the case of All Cargo Global Logistic Ltd. vs. DCIT 137 ITD 287, when the said decision has not been accepted by the department and has not yet attained finality." "2. On the facts and in the circumstances of the case and in law, Ld. CIT(A) erred in d....

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.... the Hon'ble Jurisdictional High Court in the case of CIT v. Murli Agro Products Ltd., [ITA.No. 36 of 2009 dated 26.10.2010]; CIT v. Continental Warehousing Corporation [374 ITR 645] and the Special Bench decision of the Mumbai in the case of All Cargo Global Logistics Ltd. v. DCIT [137 ITD 287], against this order the Revenue is in appeal before us for the Assessment Years 2008-09, 2010-11 & 2011-12. 6. Ld. DR vehemently supported the orders of the Assessing Officer in making the disallowance u/s. 14A of the Act. Ld. Counsel for the assessee strongly supported the orders of the Ld.CIT(A). 7. We have heard the rival submissions, perused the orders of the authorities below. It is an undisputed fact that there was no incriminating mater....

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....s of the case and in law, Ld. CIT(A) erred in taking only closing investment of other companies at Rs. 24,52,100/- representing 'B' in the formula under Rule 8D(2)(ii) as being the average of the value of investment income from which is exempt instead of Rs. 1,51,30,88,302/-." 3. "On the facts and in the circumstances of the case and in law, Ld. CIT(A) erred in holding that earning of exempt income from investment is a touchstone for making disallowance u/s 14A in-spite of fact that section 14A deals with disallowance of expenditure incurred in relation to income not includible in total income." 10. For the Assessment Year 2012-13, assessee earned dividend income of Rs..2,83,376/- from equity shares and long term capital gains of....

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....ed for the purpose of disallowance under Rule 8D (2)(ii) and 8D (2)(iii) of the Act. Thus, we sustain the order of the Ld.CIT(A) and reject the grounds raised by the Revenue. 14. Coming to the appeal of the Department as well as assessee for the Assessment Year 2013-14, it is the submission of the Ld. Counsel for the assessee that during this Assessment Year the assessee earned dividend income of Rs..750/- only and therefore the disallowance if any shall not exceed the dividend income. It is also further submitted that the assessee himself has made suomoto disallowance of Rs..5,00,000/-. 15. Ld. DR vehemently supported the orders of the Assessing Officer. 16. We have heard the rival submissions, perused the orders of the authorities belo....