2018 (7) TMI 2059

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....e following grounds of appeal: 3. Briefly, the facts of the case are that the assessee is a company duly incorporated under the provisions of the Companies Act, 1956. It is engaged in the business of property development. The return of income for the assessment year 2014-15 was filed on 30/09/2014 declaring total income of Rs. 6,32,57,700/-. Against the said return of income, the assessment was completed vide order dated 30/12/2016 passed u/s 143(3) of the Income-tax Act, 1961 [hereinafter referred to as 'the Act' for short] at total income of Rs. 6,86,39,036/-. While doing so, the AO made addition of Rs. 24,87,246/- invoking rule 8D r.w.s. 14A of the Act. The case of the AO is that the assessee-company would have incurred certai....

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.... Bench of Tribunal (Delhi) in the case of ACIT vs. Vireet Investment (P) Ltd. 82 taxmann.com 415/165 ITD 27. On the other hand, learned Departmental Representative placed reliance on the orders of the lower authorities. 6. We heard rival submissions and perused the material on record. The only issue involved is whether the AO is justified in making disallowance of Rs. 24,87,246/- under clause (iii) of rule 8D of the IT Rules. There is no dispute about the applicability of the provisions of sec.14A of the Act. The contention of the assessee is two-fold. The first limb of argument is that disallowance cannot exceed exempt income and secondly, for the purpose of working out disallowance under clause (iii) of rule 8D, the only investments....

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.... 1.1 The learned Assistant Commissioner of Income Tax. Circle- 5(1)(1), Bengaluru (AO) has erred in passing the assessment order in the manner passed by him and the learned Commissioner of Income tax, Bengaluru 5 [CIT(A)] has erred in sustaining the addition made by the learned assessing officer. The order passed by the CIT(A) is bad in law and liable to be quashed. Document 2 Grounds relating to disallowance under section 14A r/w rule 8D. 1.2 The Hon'ble CIT(A) has erred in upholding the addition made under section 14A r/w 1.3 rule 8D of the Income Tax Act, 1961 ('the Act') amounting to Rs. 24,87,246/-. The learned AO has erred in invoking provisions under section 14A as no expenses were claimed against suc....