AI Drafter 
TaxTMI 
TaxTMI 
2020 (3) TMI 387
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.... ld. Commissioner of Income-tax (Appeals)-52, Mumbai [for short the ld. CIT(A)] both dated 13.01.2017. In all appeals, the parties have raised certain common grounds of appeal, therefore, all the appeals were clubbed, heard and are decided by common order. For appreciation of fact, the appeals for Assessment Year 2013-14 are treated as lead case. The revenue has raised the following grounds of appeal: 1. "On the facts and circumstances of the case and in law, the Ld CIT(A), erred in directing the AO to restrict the disallowance u/s 14A of the IT Act to Rs. 90,83,000 as against the disallowance of Rs. 11,52,51,328 made by the assessing officer." 2. "On the facts and circumstances of the case and in law, whether the Lei CIT(....
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....ct whereas the predecessor of the ld. CIT(A) had confirmed such addition in the assessee's case on the same issue for A.Y. 2009-10 and 2010-11." 7. The appellant craves to leave, to add, to amend and/ or to alter any of the grounds of appeal, if need be. 2. The assessee in its cross appeal for A.Y. 2013-14 has raised the following grounds of appeal: 1.1. In the facts and circumstances of the case and in law, the ld. CIT(A) erred both in facts and in law in sustaining the disallowance under section 14A r.w.r. 8D(2)(iii) of the Income Tax Act, 1961. 1.2. Your appellant craves leave to add to, amend, alter, delete and/or modify the above ground of appeal on or before the final date of hearing of this appeal pe....
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....nished a summary of interest free fund consisting of share capital and reserve and surplus and the investment during the relevant Financial Year. The ld. AR further submits that since no exempt income was earned by the assessee, therefore, no disallowance under section 14A r.w.r. 8D is warranted. The ld. AR submits that on similar ground of appeal in assessee's own case for A.Y. 2012-13 in ITA No. 5246/Mum/2016, the Tribunal directed to restrict the disallowance to the voluntary disallowance offered by assessee. 5. On the other hand, the ld. DR for the revenue after going through the fund flow statement/balance sheet for A.Y. 2013-14 and the order of Tribunal for A.Y. 2012-13 relied upon the order of Assessing Officer. 6. We have cons....
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....st free fund of Rs. 1,26,289.65/- Lakhs as on 31.03.2012 . Thus, in our considered view there was no justification for making disallowance as per the provisions of section 14A r.w. Rule 8D. Further, we have noted that similar disallowance was made in AY 2008- 09, the assessee carried the matter to the Tribunal and the co-ordinate bench in ITA No. 1753/M/2012 passed the following order: "7.We have heard the rival submissions and perused the material before us. We find that assessee had not claimed any deduction in respect of exempt income nor has it claimed any expenditure against the income which does not form part of the total income. Thus, both the basic ingredients for making a disallowance u/s.14A are missing. ....
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....d of appeal as raised in appeal for A.Y. 2013-14, which we have allowed. Therefore, following the rule of consistency, the appeal for A.Y. 2014-15 is allowed with similar direction. To make it more clear the Assessing Officer directed to restrict the disallowance under section 14A to suo-moto disallowance of Rs. 7,05,027/- offered by assessee. 10. In the result, appeal of A.Y. 2014-15 by assessee is also allowed. ITA No. 6550/Mum/2017 by revenue for A.Y. 2013-14 11. Ground No.1 & 2 relates to disallowance under section 14A. Considering the fact that while deciding the similar issue in assessee's appeal for AY 2013-14, we have restricted the disallowance to the suomoto disallowance holding that the assessee has not earned any exe....