TaxTMI 
TaxTMI 
2017 (4) TMI 1528
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....he CIT(A) was not justified in sustaining addition of Rs. 201.66 on mobilization advance on notional and hypothetical basis even though no such income had accrued or accounted for in the books of accounts. (ii) That the issue of alleged interest is of contingent nature and there is no valid basis for such addition. 2(i) That on the facts and circumstances of the case, the ld CIT(A) was not justified in sustaining disallowance of Rs. 1125844/- u/s 14A of the Income Tax Act, 1961 without proper appreciation of facts or finding that the assessee has incurred any expenses which is relatable to claim of exempt income or any such related investment. (ii) That impugned disallowance is in total regard to provisions of sec....
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....8, even though every Assessment Year is an independent year and involves independent facts." 4. Factual matrix of the case is that assessee company engaged in technical consultancy and export business filed its return of income on 25/09/2009 at Rs. 1965150476/- subsequently revised on 29, March 2011 at Rs. 1 915900220/-. The assessment under section 143 (3) of the act was passed on 03/03/2013 determining total income of Rs. 1956428064/-. Three disallowances were made with respect to prior period expenses, interest on mobilization advances and disallowances under section 14 A, read with rule 8D of the income tax act. Assessee contested them before the Ld. CIT (A), who deleted the disallowance of Rs. 1 92.36 Lacs of prior period expe....
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.... assessment year 2008 - 09 confirmed the above addition. Therefore, assessee has challenged it before us. 7. The Ld. authorized representative submitted that as per Para No. 7.2 of the order of the Ld. CIT appeal it is been stated that the order of the Ld. CIT (A) for assessment year 2008 - 09 was under challenge before the income tax appellate tribunal and therefore pending that appeal, the CIT appeal has followed the decision of his predecessor. He further submitted that now appeal of the assessee for 2008 - 09 has been decided by the coordinate bench wide order dated 20/01/2016 wherein in Para No. 10, the above disallowance has been deleted. Therefore, he submitted that issue is squarely covered in favour of the assessee. 8. Ld. de....
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....e assessee has claimed that no expenditure has been incurred by it to on the said exempted income. During the assessment proceedings, the Ld. assessing officer asked the assessee that why rule 8D under section 14 A should not be applied in case of the assessee. Subsequently, after considering the submission of the assessee disallowance of Rs. 1 125844/- was made. The Ld. CIT (A) confirmed the disallowance. Assessee is in appeal before us. 11. The Ld. authorized representative submitted that Ld. assessing officer has not noted his satisfaction with respect to examination of the books of accounts rejecting the explanation of the assessee that it has not incurred any expenditure with respect to the above income. He referred to the decisi....
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....ing the judicial precedent of the jurisdictional High Court we direct the Ld. assessing officer to delete the disallowance of Rs. 112 5844/- under section 14A of the income tax act applying the provisions of Rule 8D of the Income Tax Rules, 1962. Reversing the finding of the Ld. first appellate authority, we allow ground No. 2 of the appeal of the assessee. 14. Ground No. 3 of the appeal of the assessee is with respect to the addition of Rs. 48.87 crores on protective basis consequential to the addition of Rs. 71.26 crores made by the revenue authorities in the assessment year 2008 - 09. The Ld. AO has submitted that the above issue is covered against the assessee vide ground No. 3 of the appeal of the assessee in assessment year 2008 - ....