TaxTMI 
TaxTMI 
2019 (8) TMI 370
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.... filed cross objections with regard to the appeals filed by the Revenue in CO Nos.23 & 24/PUN/2019. 2. These cases were heard together. Since grounds raised by the Revenue in both the appeals and grounds raised in cross objection by the assessee are identical, these cases are being disposed of vide this consolidated order. ITA No.1111/PUN/2017 (By Revenue) A.Y. 2013-14 3. In ITA No.1111/PUN/2017, the Revenue has raised following grounds: "1. The order of the Ld. Commissioner of Income Tax (Appeals) is contrary to law and on facts and in circumstances of the case. 2. The Ld. Commissioner of Income Tax (Appeals) erred on the facts and in the circumstances of the case and in law deleting the disallowance u/s 14A of the Income tax A....
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....ct, 1961 (hereinafter referred to as "the Act‟) in the case of Insurance companies like assessee where provisions of Section 44 of the Act apply. The Ld. Counsel submitted that it is the case of the assessee, where computation of income was done u/s.44 of the Act relating to "Insurance business", the provision of section 14A cannot be invoked for making disallowance. Stating that this is covered issue, the Ld. Counsel for the assessee submitted that the CIT(Appeal) granted relief to the assessee on this issue as per discussion given in Para 6 stating the Tribunal has decided this issue in favour of the assessee relying on the earlier order of Tribunal in assessee‟s own case for assessment year 2003-04. The Ld. Counsel also submi....
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....surance companies therefore it was not permissible to the AD to travel beyond s. 44 of First Schedule of IT Act. Since the view has already been expressed by respected Co- ordinate Bench therefore, we have no reason to take any other view except to follow the same. With the result we hereby accept the argument of learned Authorized Representative to the extent that in the present situation (he provisions of s. 14A need not to apply while granting exemption to an income earned on sale of investment primarily because of the reason of the withdrawal or deletion of sub-r. 5(b) to First Schedule of s. 44 of IT Act. Once we have taken this view therefore the enhancement as proposed by learned CIT(A) is reversed and the directions in this regard a....
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....pt dividend and interest income : The decision of the learned CIT(A) that the provisions of section 14A are not applicable in respect of dividend and interest income exempt under section 10 of the Income Tax Act, 1961 ( "the Act‟) is justifiable under the law and in accordance with the Hon‟ble Tribunal‟s ruling for earlier years in the Respondent‟s own case. 2. Cross Objection No.2 : Without prejudice to Cross objection No.1 above, challenging the computation of disallowance under section 14A read with revised Rule 8D of the Income Tax Rules, 1962 ('the Rules'). Without prejudice to above, in case if section 14A is held to be applicable, the disallowance in relation to exempt dividend income should be r....
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....as already been granted to the assessee on the issue relating to the Provision of section 44 Vs. 14A of the Act, we are of the opinion that grounds of Cross objection Nos. 1 to 3 are dismissed as academic. 12. Referring to Ground No.4, the Ld. Counsel submitted that this ground relates to the allowability of deduction in respect of the educational cess paid by the assessee. The Ld. Counsel further submitted that this issue is covered in nature by virtue of the decision of the Hon‟ble High Court of Judicature for Rajasthan Bench at Jaipur in the case of Chambal Fertilisers and Chemicals Ltd. Vs. JCIT, Range -2, Kota. 13. On hearing both the parties on this issue, we find that this issue is covered one by the decision of the Hon̶....