TaxTMI 
TaxTMI 
2015 (10) TMI 2778
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....f the Income-tax Act, 1961 read with Rule 8-D of I.T. Rules, 1962 on account of investment of Rs. 24,47,37,681/ - observing as under:- "4.0 Disallowance on tax free investment u/s 14A rw. rule 8D: - During the assessment proceeding it was not iced that the assessee made the following investments into the equities & shares, mutual funds, growth funds etc.: - Sr. No. No. of units Particulars Amount as on 31.3.07 Amount as on 31.3.06 1. 150000 Birla FTP Retail 386 D Series U-G 15,00,000/- - 2. 10000000 LI 30 'D SBI Debt Fund Series - 90 Days - Div. 10,00,00,000/- - 3. 4019703 LI 33 D SBI Debt Fund Series- 90 Days- Div. 4,01.97,480/- - 4. 4000000 LI 36 G SBI Debt Fund Series -90 Days G 4,00,00,000/- - 5. 9787813 LO30 Magnum Insta Cash Fund- Dividend 10,45,40,201/- - 6. 100000 Principal PNB FMP S!V 385 D REG-G 10,00,000/- - 7. 250000 Reliance FH Fund Ml 371 D SIVRET-G 25,00,000/- - 8. 20000 SB! One India Fund 2,00,000/- - 9. 162882 LO57D Magnum Insta Cash Fund 15.73.766/- 4.88.250/- ....
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....ome from which does not or shall not form part of the total income, as appearing in the balance sheet of the assessee, on the first day and the last day of the previous year, C =the average of total assets as appearing in the balance sheet of the assessee, on the first day and the last day of the previous year; (iii) an amount equal to one-half per cent of the average of the value of investment, income from which does not or shall not form part of the total income, as appearing in the balance sheet of the assesses, on the first day and the last day of the previous year." The assessee vide order sheet entry dated 20.11-09 was asked that there were total investments of Rs. 29,38,09,697/- as on 31.03.2007 and as per assessee, Rs. 24,47,37,6817- are investments on which dividend income is not taxable. The calculation under section 14A r.w. Rule 8D is as follows:- Opening Investments as on 01.04.06 0 Closing investments as on 31.03.07 244737681 Total 244737681 Average 122368841 Interest Paid 21962710 ....
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....the record. The proceedings for assessment year 2002-03 would stand remanded to the Assessing Officer. The Assessing Officer should determine as to whether the assessee had incurred any expenditure (direct or indirect) in relation to dividend income/ income from mutual funds which does not form part of the total income as contemplated under section 14A . The Assessing Officer can adopt a reason-able basis for effecting the apportionment. While making that determination, the Assessing Officer should provide a reasonable opportunity to the assessee of producing its accounts and relevant or germane material having a bearing on the facts and circumstances of the case." In view of the above decision of the Hon'ble Bombay High Court, we set aside the findings of the Ld. CIT(A) on this issue and remand the matter to CIT(A) with the direct ion to decide the same afresh keeping in view the observations of the Hon'ble Bombay High Court in the case of Godrej and Boyce Manufacturing. Co. Ltd Vs. DCIT (supra). The CIT(A) shall provide an opportunity of being heard to the assessee in the matter. For statistical purposes, the ground No.1 of the appeal is allowed. 6. Ground Nos. 2, 3....
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....iled before the AO & CIT(A)- II but not made in the return of income. 9. It is observed that there is a delay of about 891 days in filing the appeal. The assessee has submitted an Application for condonation of delay, which reads as under;- "Ludhiana 25.03.2014 The Hon'ble Income Tax Appel late Tribunal Chandigarh, Bench "B", Kendriya Sadan, Sector 9 Chandigarh Re: Mrs. Sector Food Specialties Ltd, Ludhiana vs. Addll, CIT, Ludhiana Sub: - Application for condonation of Delay in fi ling the appeal. Sir, The appellant humbly submits as under:- 1. That the appeal filed by the revenue bearing no. 1063/2011 is fixed before the Hon'ble Bench for today i.e. 25.03.2014. 2. That the appellant is filling appeal against the order of CIT(A)- II dated 08.08.2011 which is late by 950 days as the order of the CIT(A)-II was received on 18.08.2011. 3. That the delay in filing the appeal has occurred as the claim for exempt ion of dividend income of Rs. 53,11,447/- (Wrongly mentioned at Rs. 20,19,367/- ) was made before the AO which the AO did not deal with in the assessmen....
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....e Hon'ble Tribunal . 5. That the mistake came to light only when I went through the file for preparing the department 's appeal . 6. That the delay in filing the appeal is inadvertent and the same may please be condoned. (Sd. Subhash Aggarwal ) Deponent Verification I do hereby solemnly declare and affirm that the above affidavit is true and correct to the best of my knowledge and belief and nothing material has been concealed. (Sd. Subhash Aggarwal ) Deponent" Dated: 25th March, 2014 10. We have heard the rival submissions. The content ion of the assessee is that it had claimed exempt ion in respect of dividend income of Rs. 53,11,447/- (wrongly mentioned as 20,19,367/- ) in the writ ten submissions filed before the Assessing officer as well as CIT(A) , which exempt ion by an oversight was not claimed in the return of income. In the Affidavit , Sh. Subhash Aggarwal submitted that since the issue regarding dividend income was not specifically dealt with by the lower authorities and the CIT(A) had decided all the other issues in favour of the assessee, he inadvertently did not advise his client to file an appeal bef....