2019 (2) TMI 985

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....(in short "the Act") dated 29.03.2014 for the Assessment Year 2011-12. 2. Ground no. 1(a) raised by the assessee is general in nature and does not require any specific adjudication. 3. Ground no. 1(b) is with regard to action of the ld. CIT(A) confirming the disallowance of Rs. 10,39,896/- made u/s 14A read with Rule 8D of the Rules. 3.1. Brief facts of this issue is that the ld. AO on perusal of the audited balance sheet of the assessee observed that the assessee had invested in quoted and unquoted shares and units of mutual funds. But no disallowance u/s 14A of the Act was made in the return of income by the assessee. The ld. AO accordingly invoked the computation mechanism provided under Rule 8D of the Rules and invoked first li....

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..... Ltd. vs. CIT reported in 372 ITR 694 wherein it was held as under: 9. In the present case, the AO has not firstly disclosed why the appellant/assessee's claim for attributing Rs. 2,97,440 as a disallowance under s. 14A had to be rejected. Taikisha Engg. India Ltd. (supra) says that the jurisdiction to proceed further and determine amounts is derived after examination of the accounts and rejection if any of the assessee's claim or explanation. The second aspect is there appears to have been no scrutiny of the accounts by the AO-an aspect which is completely unnoticed by the CIT(A) and the Tribunal. The third, and in the opinion of this Court, important anomaly which we cannot be unmindful is that whereas the entire tax exe....

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.... other services given by it such as opening of letters of credit, issuance of drafts or bankers cheques etc against which the bank generally charges certain amount which are commonly known as 'bank charges'. Both the lower authorities however did not agree to these contentions of the assessee and held that the monies paid by the assessee to the bank is in the nature of commission paid to the bank and accordingly, liable for deduction of tax at source u/s 194H of the Act and held that failure to do the same warrants disallowance u/s 40a(ia) of the Act. Aggrieved the assessee is in appeal before us. 5.2. We have heard the rival submissions. We find that the monies paid by the assessee to the bank are nothing in the form of bank charges and....

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....rved that the assessee was paid interest u/s 244A of Rs. 4,34,194/- on 24.02.2011. Since the said sum was not offered to tax by the assessee the ld.AO sought to tax the same while completing the assessment. The assessee pleaded before the ld. CIT(A) that it had not received any refund from the Income Tax Department for the assessment year 2009-10 and hence no entry was passed in the books towards interest income. The assessee also placed the outstanding demand statement downloaded from the income tax department website wherein the demand was still pending to be paid by the assessee for the said assessment year. The ld. CIT(A) did not heed to these contentions of the assessee and upheld the action of the ld. AO by simply stating the interest....