TaxTMI 
TaxTMI 
2021 (1) TMI 12
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....e Tax Act, 1961 (hereinafter referred to as "the Act") for the Assessment Years 2013-14 and 2014-15 respectively. Since both the appeals relate to the same assessee, these (appeals) are disposed of by a common order. ITA No. 2371/Kol/2019 A.Y. 2013-14 2. This appeal as taken up as a lead case. 3. The assessee has made an application on 09-10-2020 for admission of additional Grounds of appeal which was not therein initially before us, copy whereof was also submitted to the Ld. DR. 4. At the time of hearing of the instant appeals, the Ld. Counsel appearing on behalf of the assessee submitted before us that the omission of this ground was genuine and a bonafide mistake and not intentional and malafide. It is relevant to mention tha....
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....ed to file the details of tax free income earned by the assessee and to explain why provisions of section 14A of the Act should not be invoked. In response to that the assessee submitted its reply on 14-12-2016 along with calculation for such suo motu disallowance u/s. 14A as it also reflects from the order passed by the Ld. AO. However, such explanation as rendered by the assessee was not found acceptable and considering the CBDT Circular dated 11-02-2014 and the recent Amendment in Rule 8D vide Notification No. S.O. 1949 E [F. No. 370142/7/2016-TPL] dated 02-06-2016, the disallowance of expenditure u/s. 14A of the Act the Ld. AO computed the disallowance of Rs. 2,67,07,781/- at 1% of the average monthly balance of the investment. Since th....
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....anation of the assessee was considered, but not acceptable" has been made instead of giving specific reason for such non acceptance. It is evident from the records particularly the order passed by the Ld. AO that without recording satisfaction about the correctness of the claim of assessee u/s. 10(34) of the Act, the Ld. AO has made the quantum of disallowance by invoking the Rule 8D of the Income-tax Rules, 1962. The accounts of the assessee has been examined, in absence of which the order of disallowances and Ld. AO is not sustainable. In this regard on the same set of facts, the judgment which has been cited by the Ld. Counsel appearing for the assessee in the matter of REI Agro Ltd. has been considered by us. The Ld. Tribunal (ITAT Kolk....
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....ospective in nature and has no manner of application in the AY 2013-14 or AY 2014-15. 12. Further, that the rule of consistency also to be followed by the authorities below particularly when in the earlier years the basis and manner of working out suo motu disallowance of administrative expenses with reference to establishment and expansion expenses has been consistently followed by Revenue. It appears from the documents submitted before us that for the AYs. 2010-11, 2011-12 and 2012-13 though such query in respect of disallowance under section 14A/Read with Rule 8D was raised by the AO, after examining the same manner and method of working out disallowance of administrative expenses no further disallowance was made by the AO accepting t....