2013 (6) TMI 861

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....961 read with Rule 8D. 3. We have heard both the parties and perused the material placed before us. At the time of hearing before us, the contention of the learned counsel was limited. He did not dispute that for the year under consideration, i.e., AY 2008-09, Rule 8D is applicable and, therefore, disallowance is to be computed as per Rule 8D. His limited argument was that while computing the disallowance under Rule 8D, the Assessing Officer has taken the interest component of Rs. 2,50,598/-. He stated that the borrowed money has not been utilized for the purpose of investment in exempt assets and, therefore, no part of interest can be disallowed. However, from a perusal of the assessment order, we find that the assessee himself has furn....

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....sessing Officer or before the CIT(A). In view of the above, we do not find any merit in ground No.1 of the assessee's appeal. The same is rejected. 5. Ground No.2 is against the addition of Rs. 20,56,607/- under Section 41(1) of the Act. 6. At the time of hearing before us, it is stated by the learned counsel that the assessee has creditors amounting to Rs. 20,56,607/- on account of tea estate operations undertaken by it in the year 2002. That in the subsequent year, i.e., FY 2010-11 relevant to AY 2011-12, the assessee company has itself wrote back the above creditors and offered as income. That the same has been assessed as income in AY 2011-12. That the same income cannot be assessed twice. 7. Learned DR, on the other hand, stat....

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.... the material placed before us. At page 3 paragraph 4, the Assessing Officer has recorded the finding that the details of gift were furnished. Thereafter, he discussed the details of gift of Rs. 11,52,260/- which read as under:- Sl.No. Date of purchase of gift Description of item gifted Amount of item gifted 1 09.04.2007 Necklace with pearls and diamonds 2,17,260 2 14.5.2007 Diamond bracelet/Diamond ear ring 1,34,300 3 07.11.2007 Bangles with diamond 87,000 4 07.11.2007 Diamond ear rings 74,000 5 07.11.2007 Diamond ring 82,000 6 07.11.2007 Diamond bracelet/diamond ring 2,22,000 7 07.11.2007 Diamond emerald pendant 40,000 8 11.01.2008 Pas....