2019 (2) TMI 1412

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....allness of the delay and the principles laid down by Hon'ble Supreme Court in the case of Smt Kitizi Vrs. Land Acquisition Collector, AIR 1987, Page 1353 (SC), we condone the delay and admit the appeal for deciding the same on merits. 3. Today nobody has appeared on behalf of assessee in spite of several calls and even no application for adjournment was moved. From the records, we also noticed that none had appeared on 13.11.18, 28.09.18, 09.08.18, 27.06.18. The notices in this case were sent to the assessee on the address mentioned by the assessee in Form No. 36, but there is a report of the Postal Authority dated 25.10.18 that assessee has refused to accept the notice. Even thereafter another notice dated 15.11.18 was again issued, but....

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....no. 4.2, 4.2.1 & 4.2.2, which is reproduced below:- 4.2 I have carefully considered the facts of the case and the submissions of the Ld AR have also none through the decisions retied on by the AO and the Ld AR as seen from the facts of the cases the appellant has made investment in exempt income earning avenues and earned dividend Income of Rs. 15,59,610/- during the year but not made any disallowance by invoking rule 8D. As seen from the balance sheet the own funds as on 31/03/2012 are only Rs. 1,4 cr4ore against the investment of Rs. 48.07crore. The Short term borrowing, on the other hand, stand at Rs. 44.43 cr, it is therefore evident from, the above financial details that the investment was not sourced from own funds.but was so....

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....credit to the extent of Rs. 2,04,750/- u/s 14A since the auditors have clearly pointed out in form No3CD that the appellant is liable to make disallowance u/s 14A of the said amount. The balance addition of Rs. 1,49,38,483 (151,42,233, -2,04,750) is required to be disallowed as worked out by the AO under limb (ii) and limb(iii) of Rule 8D(2). This disallowance, no doubt, is more than the dividend income earned during the year. But that does not matter while making disallowance u/s 14A since the section 14A is a disallowance section and not a charging section and the words used in the section are "relatable to". The same view was endorsed by the Board's Circular No.5 of 2014 dated 11.2.2014. In my considered opinion, when all ot....