2020 (4) TMI 51

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....d in directing to exclude the amount of Rs. 2,74,86,627/- being the investment made by the assessee in M/s Munjal Kiriu Industries Pvt. Ltd., M/s Hero Chassis System (P) Ltd. and M/s Hero Global Design Ltd. for working out the amount of average investment for the purpose of computation of disallowance u/s 14A read with rule 8D by holding that there is no nexus between the interest paid by the appellant and the investment made in these companies. 2. On the facts and in the circumstances of the case and in law, ld. CIT (A) has erred in deleting the addition of Rs. 28,27,564/- made by the AO on the ground that the payment of expenses made to M/s Hero Global Design Ltd. were not incurred in ordinary course of business. 3. On t....

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.... question that arises for consideration, the Court finds that the complete answer is provided by the decision of this Court in CIT v. Holcim India (P.) Ltd. [2015] 57 taxmann.com 28. In that case a similar question arose, viz., whether the ITAT was justified in deleting the disallowance under Section 14A of the Act when no dividend income had been earned by the assessee in the relevant assessment year? The Court referred to the decision of this Court in Maxopp Investment Ltd.'s case (supra) and to the decision of the Special Bench of the ITAT in this very case i.e. Cheminvest Ltd. v. ITO [2009] 121 ITD 318. The Court also referred to three decisions of different High Courts which have decided the issue against Revenue. The first was the....

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....ering Services using specialized software by which the fragmentation of drawings supplied by the customers of assessee into sub-parts is done to facilitate manufacturing and costing. Three diploma engineers and one ITI is the total staff of M/s Hero Global Design Ltd. and the total salary of these persons in the books of M/s Hero Global Design Ltd is Rs. 26.49 lakhs, while the total employee benefit expenses are Rs. 28.22 lakhs. The billing is on man hour basis and the payment made by the assessee almost equals the salary cost of above four persons being employees of M/s Hero Global Design Ltd. 9. The assessee also explained that when it receives designs in respect of orders from its clients like BMW etc, these persons examine the drawin....