2020 (1) TMI 81

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....IT(A)22/IT/10464/2016-17 dated 06/08/2018 for AY 2013-14, CIT(A)22/IT/10571/2016-17 dated 19/02/2018 for AY 2014-15. The sole issue involved in all the 3 years is disallowance u/s 14A. 1.2 The appeals for AYs 2012-13 & 2014-15 has been filed with a delay of 179 days, the condonation of which has been sought by the assessee on the strength of condonation petition dated 22/11/2018 which is supported by the affidavit of Manager-Accounts & Finance of the assessee company. It has been submitted that learned first appellate authority, relying upon Tribunal order for AY 2010-11, upheld disallowance to the extent of Rs. 10 Lacs. The assessee did not accept the part disallowance but considering the smallness of amount, to buy peace of mind and th....

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....se for AYs 2008-09 & 2009-10, ITA Nos. 8547/Mum/2011 & others, common order dated 12/10/2018. The said order has been followed by Tribunal in AY 2011-12, ITA No.7026/Mum/2016 order dated 15/02/2019. The copies of the orders have been placed on record. 2. Facts from case records for AY 2012-13 would reveal that the assessee was saddled with disallowance u/s 14A for Rs. 16.57 Lacs for year under consideration in an assessment framed u/s 143(3) on 30/03/2015. The disallowance stem from the fact that the assessee held huge investments in shares and mutual funds for Rs. 2072.37 Lacs. The assessee also earned exempt dividend income of Rs. 138.02 Lacs from units of mutual funds, against which the assessee offered suo-moto disallowance of Rs. 2.....

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....or as per the provisions of Rule 8D of the Rules and not on any ad-hoc basis. iii. The Appellant prays that the disallowance u/s 14A of the Act made by the AO and to the extent upheld by the CIT(A) be deleted. The Appellant craves leave to add, amend, alter and/or delete any/all of the above ground of appeal. 4. Upon careful consideration, we find that the assessee had offered suo-moto disallowance in its return of income, the basis of which was submitted to Ld.AO during assessment proceedings. However, Ld. AO did not consider the same and rejected the methodology adopted by the assessee to arrive at the said disallowance, having regards to the accounts of the assessee. It was incumbent on the part of Ld. AO to arrive at judicio....