AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2018 (2) TMI 1818
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....62,734/- under sec. 14A without when no satisfaction was recorded by the AO as to the applicability of the said provisions and even the share capital and reserves of the assessee were more than the investments made. 3. For that the confirmation of the addition of Rs. 62,734/- u/ s. 14A Ld. C.I.T(A) was not justified." 4. The Assessee is a company which is engaged in the business of growing and manufacturing of tea. In the course of assessment proceedings the AO noticed that the assessee had earned exempt dividend income of Rs. 62,734/-. The assessee had disallowed a sum of Rs. 10,000/- as expenses incurred in earning exempt income which is to be disallowed u/s 14A. The AO applied Rule 8D of the IT Rules and made a disallowance of Rs. 72,....
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....t in I. T.A.No. 1399/Kol/2011. Mumbai Tribunal in the case of-J.K.Investors -(Bombay) Ltd. Vs. ACIT in ITA No.7858/Mum/2011, AY 2008-09 dated 13.03.2013. Mumbai Tribunal in the case of 3DPLM Software Solutions Ltd. Vs. ACIT in ITA No.5736/Mum/2012, AY 2008-09 dated 31.7.2014 Delhi Tribunal in the case of DCIT Vs Mls. Jindal Photo Limited in ITA No. 814 /DEU.2011 pronounced on 23.9.2011." 6. The assessee also submitted that disallowance of interest in terms of Rule 8(2)(ii) of the Rules were not warranted as the assessee has sufficient interest free fund. The assessee pointed out that the investments in shares were only to the tune of Rs. 1 crore whereas the assessee's capital and reserves were more than Rs.,7.57 crores. The assessee ....
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....the assessment proceedings. Keeping in view of above, the order of the AO is upheld and this ground of the appeal is dismissed." 9. Aggrieved by the order of CIT(A) the assessee has preferred ground nos. 2 and 3 before the Tribunal. 10. We have heard the rival submissions. It is clear from the order of the revenue authorities that they have not rejected the basis of computation of disallowance of expenses u/s 14A of the Act as made by the assessee.. The ld. Counsel for the assessee reiterated the submissions made before the revenue authorities. He further placed reliance on the decision of the Hon'ble ITAT, Kolkata bench in the case of REI Agro Ltd. Vs DCIT in ITA NO.1331/Kol/2011 for A.Y.2008-09 dated 19.06.2013. He also relied on the de....
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....voke the section 14A, he is to record a satisfaction on that issue. This satisfaction cannot be a plain satisfaction or a simple note. It is to be done with regard to accounts of the assessee. In the present case, there is no satisfaction by the AO and consequently, in view of the decision of the Coordinate Bench of this Tribunal in the case of Balrampur Chini Mills Ltd referred to supra, no disallowance under section 14A can be made. Thus the addition made u/s 14A of the Act is deleted. Ground No.2 and 3 raised by the assessee are allowed. 12. Ground No.4 raised by the assessee reads as follows :- "4. For that the Ld. C.I.T(A) erred in confirming the disallowance of Rs. 22,01,093/- being foreign travelling expenses which was incurred fo....
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....e of the appellant as well as the assessment order framed in the light of the materials available on record before the assessing officer during the assessment proceedings. The AO has mentioned that during the year under consideration, Sri Kajriwal was not associated with the company and did not serve the company in any capacity. As such, the expenses related to his studies cannot be said to be incidental in the conduct of business activities of the company. As regards remaining expenses of Rs. 5,15,759/- no business connection could be established as the assessee never had any export activity. The assessee has failed to prove the business connection of these expenses 'as claimed by him during the year under consideration. Keeping in vie....