TaxTMI 
TaxTMI 
2016 (4) TMI 1370
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....11). 2. The first ground raised by the assessee is with respect to applicability of the provisions of section 14A of the Income Tax Act, 1961 (hereinafter the Act) to the facts of the present appeal and confirmation of disallowance to the extent of 5% of the exempted income. The crux of argument advanced by ld. Counsel for the assessee, Shri D.J. Shukla, is that the exempt income was to the extent of Rs. 50 lakhs and only one business investment was made by the assessee, wherein, no disallowance is called for. On the other hand, the ld. DR, Shri Rajesh Damor, defended the conclusion, arrived at in the impugned order. 2.1. We have considered the rival submissions and perused the material available on record. The facts, in brief, are th....
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....Tax (Appeal), in the stand taken in the assessment order was affirmed against which the assessee is in further appeal before this Tribunal. 2.3. If the observation made in the assessment order, leading to addition made to the total income, conclusion drawn in the impugned order, material available on record, assertions made by the ld. respective counsel, if kept in juxtaposition and analyzed, we find that the necessary details was very much made available before the Assessing Officer/ Commissioner of Income Tax (Appeal). The investment was made out of own funds for the purposes of earning dividend. The availability of funds, details of capital share and reserve and surplus is even available at page-6 of the impugned order. So far as, app....
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.... 11 Exchange Variation 2006-07 55.5 Total 337.1 3.4. The aforesaid figures even has been mentioned in para 5.3 of the impugned order. The relief was denied to the assessee on the plea (para 5.5 of the impugned order) that the assessee could not produce the evidence with respect to these liabilities whether crystallize during the year. However, the assessee drew our attention to page 24 of the paper book with respect to rejections/refunds and we found the explanation of the assessee to be correct. Considering the facts and the explanation of the assessee, this ground is allowed. The appeal of the assessee, is, therefore, allowed. 4. Now, we shall take up the appeal of the Revenue (ITA No.4919/Mu....
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....considered as "Income from Other Sources". The various case laws relied upon by the learned O. R. are given in the context where the surplus funds were not being used for the business. However In the various case laws relied upon by the learned counsel for the assessee the deposits are being used in the course of business and are only deposited for short term periods or in current accounts and the source of funds are business receipts. In the present case, there is no dispute that the funds are sale proceedings in the business activities of the assessee company abroad. *It is also seen that instead of repatriating the funds to India, the assessee was permitted to utilize the funds for their day-to-day administration purposes as well as for ....
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.... 5% made u/s 14A of the Act of the exempted income and further holding that rule -8D is applicable from A.Y. 2008-09. We have already deliberated upon this issue while adjudicating ground number-1 of the appeal of the assessee(supra), therefore, we find no infirmity in the conclusion of the Commissioner of Income Tax (Appeal) . On this issue his stand is affirmed. 6. The last ground pertains to deleting the disallowance of Rs. 455.28 lakhs made on account of frequent flier program (FFP). The ld. DR defended the disallowance made by the Assessing Officer, whereas, the ld. Counsel for the assessee contended that the impugned issue is covered by the decision of the Tribunal in the case of Jet Airways Ltd. (ITA No.3201/Mum/2003 and 6084/Mum/....