2019 (9) TMI 759

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....rned CIT (A) erred in confirming an addition of Rs. 521,193 made by the learned AO by taking the fair arm's length interest rate in respect of loans given to associated enterprises (ae) @ 10.50 % as against interest rate of 5% charged by the appellant. (b) While confirming the said addition the learned CIT(A) gravely erred in holding that the learned AO and the learned TPO had applied interest rate of 5.23% in respect of the impugned loans to ae and that the appellant had accepted the said interest rate. (c) It is respectfully submitted that interest rate of 5.23% was accepted by the department for the next assessment year, i.e for ay: 2012-13 and it was the contention of the appellant that the same interest rate may a....

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....sions of section 14A are not applicable to share of profit from partnership firm since the same is subject to tax in the hands of the partnership firm. However not agreeing with the contentions of the assessee the Assessing Officer following the decision of the Hon'ble Bombay High Court in the case of Godrej & Boyce Manufacturing Co. Ltd v. DCIT in ITXA.No. 626 of 2010 dated 12.08.2010 computed the disallowance u/s. 14A r.w. Rule 8D of I.T. Rules. On appeal Ld.CIT(A) sustained the addition/disallowance. 5. Ld. Counsel for the assessee reiterated the submissions made before the lower authorities. He also placed reliance on the decision of the Mumbai Bench of this Tribunal in the case of M/s. C. Mahendra International Ltd. v. ACIT in I....

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.... provisions have to be applied. Assessing Officer shall also decide the issue keeping in view the decision of the Hon'ble Supreme Court in the case of Maxopp Investment Ltd. v. CIT (supra) and the Special Bench of Delhi Tribunal in the case of ACIT v. Vireet Investments Private Limited [165 ITD 27]. Thus, this issue of disallowance u/s. 14A r.w. Rule 8D is restored to the file of the Assessing Officer to decide in view of the above observations, after providing adequate opportunity of being heard to the assessee. 10. The last grounds of appeal in the appeal of the assessee is regarding restricting the deduction u/s. 10AA of the Act by allocation of expenses between SEZ and non-SEZ units of the assessee. 11. Briefly stated, the fac....

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....rs remuneration of Rs. 1,20,000/- from allocation and disallowance. 12. Ld. Counsel for the assessee before me submits that the Assessing Officer allocated the expenses on turnover basis whereas the assessee has taken the expenditure on actuals. He submits that separate Books of Accounts have been maintained by the assessee for both the units. It was also further submitted that 10AA unit has been commenced in October 2010 so there is no justification of allocation of expenses on the basis of turnover. It was also further submitted that no such disallowance has been made in later assessment years in which scrutiny assessment was also made. 13. Ld. DR vehemently supported the orders of the authorities below. 14. Heard the rival submi....