TaxTMI 
TaxTMI 
2020 (9) TMI 60
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....s before learned CIT(A) had arisen from assessment order dated 23.01.2014 passed by learned Assessing Officer (hereinafter called "the AO") u/s.143(3) of the Income-tax Act, 1961 (hereinafter called "the Act"). The appellate proceedings are conducted by Income-Tax Appellate Tribunal, Chennai Bench 'A', Chennai through Virtual Court via videoconferencing using webex platform. 2. The grounds of appeal raised by assessee in memo of appeal filed with the Income-Tax Appellate Tribunal, Chennai (hereinafter called "the Tribunal") read as under:- "a) The order of the Commissioner of the Income Tax (Appeals) is contrary to law, weight of evidence and probabilities of the case. b) The Commissioner of Income tax (Appeals) has considered i....
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....essment proceedings conducted by AO u/s 143(3) read with Section 143(2) of the 1961 Act , the disallowance of expenditure to the tune of Rs. 16,12,158/- was made by AO by invoking provisions of Section 14A of the 1961 Act read with Rule 8D of the Income-tax Rules, 1962 , which disallowance of aforesaid expenditure stood added to income of the assessee chargeable to tax, vide assessment order dated 23.01.2014 passed by AO u/s 143(3) of the 1961 Act. The details of additions made by the AO by invoking provisions of Section 14A of the 1961 Act read with Rule 8D of the 1962 Rules are reproduced in the chart hereunder: Rule 8D Amount (in Rs. ) Rule 8D(i) 300282 Rule 8D(ii) = A * B/C 1030697.766 Rule 8D(iii) = 0.5% * B 281178.79 ....
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....erations Private Limited to the tune of Rs. 46,30,500/- yielded dividend income which was claimed as an exempt income by the assessee and hence accordingly learned CIT(A) restricted disallowance u/s 14A of the 1961 Act read with Rule 8D(2)(iii) of the 1962 Rules to only those investments which yielded exempt income during the year under consideration by applying disallowing rate of 0.5% of average investments held during the year which actually yielded an exempt income during the year under consideration , which led to restricting disallowance of expenditure to the tune of Rs. 11,576/- by learned CIT(A) as against disallowance of Rs. 2,81,179/- made by the AO. This issue has also attained finality. It is not brought to the notice of the Ben....
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....assessee that total investments were to the tune of Rs. 11,24,71,516/- as at 31.03.2010 and the Investments were at Rs. Nil as at 31.03.2011. It was submitted that the assessee sold/redeemed all its investments during the year under consideration and that is how the balance of investment as at year end was at Rs. Nil. It was also submitted that borrowings were made for business purposes and not for making investments. It was submitted that this plea was taken before the authorities below that no part of interest bearing borrowings were utilized for making investments and it is only interest free owned funds which were deployed for making investments. Thus, it was submitted that no disallowance of interest expenditure by invoking provisions ....
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....y assessee in this appeal filed before tribunal is with respect to disallowance of interest expenditure to the tune of Rs. 10,30,697/- by authorities below by invoking provisions of Section 14A of the 1961 Act read with Rule 8D(2)(ii) of the 1962 Rules. We have observed that admittedly the assessee had investment of Rs. 11,24,71,516/- as at beginning of the previous year as on 01.04.2010, while the investments at the close of the previous were to the tune of Rs. Nil as at 31.03.2011 , which gives average investment of Rs. 5,62,35,758/- held by the assessee during the year under consideration . The assessee has sold/redeemed its entire investment portfolio during the year under consideration. It is the contention of the assessee even before ....