2021 (2) TMI 228

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s 14A r.w.r. 8D from Rs. 14,61,04,401/- to Rs. 81,79,623/- by accepting the assessee's revised computation of income based on afterthought, whereas the AO had made the addition u/s 14A on the basis of disallowance u/s 14A r.w.r 8D as arrived by the Tax Auditor of the assessee as reflected in Tax Audit Report submitted by the assessee along with its return of income. 2. On facts and under the circumstances of the case, the Ld.CIT(A) has erred in allowing the expenditure of Rs. 31,57,85,891/- u/s 37 of I.T. Act ignoring that the assessee had itself disallowed all the expenses which are not related to its existing business for the A.Y. 2013-14. 3. Religare Enterprises Ltd. filed its return of income for the Assessment Year 2012-13 ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ce read with Rule 8D is therefore, rejected. The assessee has not revised its income tax return. The claim was filed during the course of assessment proceedings. The tax auditor worked out the disallowance at Rs. 14,61,04,401/- and the same was not controverted by the assessee company. Thus, the Assessing Officer made an addition of Rs. 37,50,000/- (14,61,04,401/- 14,23,54,401/-) under Rule 8D read with Section 14A of the Act. 6. The Ld. AR submitted that the CIT(A) has taken proper cognizance of the investment and thereafter partly disallowed the deduction claimed u/s 14A. Thus, the order of the CIT(A) should be sustained on this point. The Ld. AR also made further submissions that the disallowing should not exceed exempt income. 7. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... that in respect of the expenses in connection with new line of business, the assessee debited the said expenses to the Profit and Loss account. The Assessing Officer observed that on one hand the business of support system to subsidiaries/group companies was discontinued by the assessee company and on the other hand there is sharp increase in various expenditure such as rent, electricity, water, repair and maintenance etc. The Ld. DR further submitted that the Assessing Officer after going through the details furnished by the assessee company has rightly held that new premises taken on rent/ lease, but the purpose and justification for the increase in expenses was not given by the assessee. The Ld. DR submitted that the Assessing Officer h....