TaxTMI 
TaxTMI 
2016 (7) TMI 1553
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....fective ground raised in the appeal of the assessee is with regard to confirmation of disallowance Rs..15,69,623/- made under section 14A of the Income Tax Act, 1961 ["Act" in short] r.w. Rule 8 D of Income Tax Rules. In the Revenue's appeal, the only effective ground raised is with regard to deletion of addition of Rs..2,62,55,223/- towards deferred revenue income. 2. Brief facts of the case are that the assessee is engaged in the business of sale of holiday time shares and resorts. The assessee filed its return of income for the assessment year 2009-10 on 29.09.2009 admitting NIL income. The case of the assessee was selected for scrutiny and notice under section 143(2) of the Act dated 20.08.2010 was issued and duly served on the assess....
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....penses of Rs..15,69,623/- under Rule 8D of the IT Rules r.w.s 14A of the Act. While making the disallowance, the Assessing Officer by relying on the order of the ld. CIT(A) for the assessment year 2008-09, wherein, the ld. CIT(A) confirmed the disallowance by relying on various case law including the Delhi Special Bench decision in the case of Cheminvest Ltd. vs. ITO 121 ITD 318. During the course of appellate proceedings, the AR of the assessee vehemently argued against the action of the Assessing Officer in making disallowance under section 14A of the Act. The ld. CIT(A) considered the submissions of the assessee at length. Before the ld. CIT(A), the AR of the assessee did not deny the fact of incurring expenditure for managing the invest....
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....facilities in the accounts. The Assessing Officer was of the view that the entire sale amount including 55% is taxable in the year of receipt. Before the Assessing Officer, the AR of the assessee relied on the decision in the case of M/s Mahindra Holidays & Resorts(India) Ltd. [2010] 003 ITR 600 and argued that the Tribunal has decided the issue in favour of the assessee. However, since similar issue decided by the Tribunal in assessee's own case for assessment year 2001-02 in favour of revenue is pending before the High Court, the Assessing Officer, the above amount of deferred income of Rs..2,62,55,223/- received by the assessee and treated as advance subscription was treated as income of the assessee and brought to tax. 8. The asse....