TaxTMI 
TaxTMI 
2018 (4) TMI 1696
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....d 29.01.2019 & 13.12.2011 for Assessment Years 2005-2006. In ITA No. 3336/Mum/2011 the assessee has raised the following grounds of appeal: Disallowance u/s.14A The learned Commissioner of Income-tax (Appeals) ["CIT (A)"] has erred both in law and on facts in concluding that disallowance under section 14A is applicable without verification of the details and evidences submitted by the Appellant in support of the claim that the appellant had not incurred any expenditure in relation to exempt income. The learned CIT (A) ought to have appreciated on the basis of the facts of the appellant that in view of the decision of the Bombay High Court in the case of Godrej & Boyce Mfg. Co. Ltd., no disallowance can be made u/s....
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....the same should be treated as capital expenditure. 6. Brief facts of the case are that the assessee filed return of income for relevant Assessment Year on 31.10.2005 declaring total income of Rs. 851,02,26,690/-. The assessment was completed on 26.12.2008 under section 143(3) of the Act. The Assessing Officer besides the other addition/disallowance disallowed warranty expenses of Rs. 15,39,00,000/- and expenses on issue of foreign currency convertible debt of Rs. 30,62,50,907/-. On appeal before the Ld. CIT(A) both the addition/disallowance was allowed. Thus, further aggrieved by the order of Ld. CIT(A), the Revenue has filed the present appeal before us. 7. We have heard the Ld. Departmental Representative (DR) for the Revenue and Ld....
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....96-97. The appeal of the revenue was dismissed by the coordinate bench of the Tribunal with the following order; Next ground is about provision for warranty of Rs. 35.61 crores. It is found that identical ground raised by the AG, was dismissed by the Tribunal, while deciding the appeal for AY 1996-97. We are reproducing paragraph no.2 of the pg. 10 of the said order and it reads as under:- Ground No.7 in revenue's appeal relates la provision for warranty expenses" of Rs. 12,55,68,000/-. Both the parties agreed that this issue is covered in favour of the assessee by the decision of the Tribunal in assessee's own case for the AYs 1992-93, 1994-95 and 1995-96 (ITA No.961/M/03 dt. 23. 3. 03, ITA No.6705/M/98 dt.19.4.06....
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....td. 334 ITR 109 (Kar), CIT Vs Havells India Ltd. 352 ITR 376 (Del.), CIT Vs Instrumentation Ltd. (37 taxmann.com 271 (Raj.) and CIT Vs Sukhjit Starch & Chemicals Ltd. 326 ITR 29 (P & H). The ld. DR for the Revenue fairly conceded that this ground of appeal is also covered in favour of assessee. 10. We have considered the submission of ld. representative of the parties and find that similar ground of appeal was raised in assessee's group companies in Tata Iron & Steel Company Ltd. Vs. DCIT in appeal for A.Y. 1987-88,m 1989-90 & 1990-1991 in ITAs No. 3965-3967/Mum/2003 and 3982- 3984/Mum/2003 and the Tribunal vide order dated 07.03.2014 allowed the similar relief. The ld. AR of the assessee has placed on record the copy of decision on reco....
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....onfirming the disallowance made by assessing officer on ad hoc basis of 5% of the attempt income under the provisions of section 14 A of the income tax act, disregarding the facts of the case that no expenditure had been incurred in relation to exempt income. The learned Commissioner (Appeals) has erred in law and facts in confirming the disallowance under section 14A without verification of the details and evidences submitted by the appellant in support of the claim that the appellant had not incurred any expenditure in relation to the attempt income. 15. The learned AR of the assessee submits that the grounds of appeal raised by assessee are covered in favour of the assessee in assessee's own case for assessment year 1999-2000....
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.... 2465.06 Crore. The assessee during the relevant financial year has made the investment of Rs. 1189.92 Crore. From the perusal of financial statement, we have noted that the interest free funds available with the assessee are more than the investment made during the year. The Hon'ble Bombay High Court in Reliance Utility and Power Ltd (supra) held that where both the interest free funds and interest bearing funds are available and the interest free funds are more than the investment made the presumption is that the investment is made out of interest free funds available with the assessee. The High Court further held that for the years for which Rule 8D is not applicable and in the event the AO is not satisfied with the working given by the ....