TaxTMI 
TaxTMI 
2021 (2) TMI 954
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....rred to as Act) dated 05/03/2014 by the ld. Addl. Commissioner of Income Tax, Range-6(3), Mumbai (hereinafter referred to as ld. AO). 2. At the outset, we find that there is a delay in filing of cross objections by the assessee before us. We find that assessee had explained that the Form No.36 filed by the Revenue in Revenue appeal was received by it on 25/02/2020 and in view of the huge spread of Covid-19 cases in the nation, lockdown was announced and accordingly, the assessee's offices were closed, ultimately cross objection was filed through e-mail on 22/06/2020 by the assessee and hard copy was again filed on 01/12/2020. Hence, it was pleaded that there was no delay of 250 days as pointed out by the Registry and that the delay was eff....
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....he assessee also pleaded that all the investments were made in the mutual funds, shares and the purpose of the investment was expansion of business through subsidiaries and joint ventures. Investments made in mutual funds are current investments and made out of proceeds of shares issued under QIP model in F.Y.2006-07. The borrowings made by the assessee were used only for the purpose of the business of the assessee and not for the purpose of making any investment and hence, the interest expenditure thereon cannot be attributed for the purpose of earning any exempt income from investments. 3.2. The ld. AO however, did not agree to these contentions of the assessee and proceeded to make disallowance under second and third limb of the assesse....
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....stating that no disallowance of administrative expenses should be made under the third limb of Rule 8D(2) of the Rules. The assessee is also in cross objection before us against the disallowance of expenses made @10% of exempt income under Clause- f of Section 115JB while computing the book profits. There is no dispute regarding the applicability of computation mechanism provided in Rule 8D(2) of the Rules in the instant case. 3.6. We find that the law now is very well settled that as far as the disallowance of indirect expenses under third limb of Rule 8D(2) of the Rules, the only those investments which had actually yielded exempt income need to be considered for working out the disallowance thereon. This has been held by the Special Ben....
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....tive expenses. Therefore, we are directing AO to determine the total administrative expenses and also determine the total income earned by assessee including taxable and exempt income, apply the ratio of income to determine the administrative expenses and can be apportioned to exempt income. Simultaneously, calculate 0.5% of the investment as per rule 8D(2)(iii) of the rule, in applying the rules, he should consider only those investments which has actually earned dividend /exempt income. Then compare the both method of calculation and in order to apply provision of section 14A, he should consider the amount calculated above said two methods whichever is less, Accordingly, ground no. 1 raised by assessee is allowed for statistical purposes.....
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....et price on the date of grant is treated as employee compensation cost, which is amortized over the period of vesting. During the year, the assessee granted stock option of 158997 shares to its employees. The shares are to be issued at Rs. 428/- per share (as against face value of Rs. 10 per share) and the relevant market price on the date of grant was Rs. 443.79 per share. The difference of Rs. 15.79 per share was treated as employee compensation in the books of accounts and charged to profit and loss account over the vesting period which is five years. Thus, prorata account of such amount was charged as deferred employees compensation and claimed as expenses amounting to Rs. 20,32,000/- during the year. The assessee pleaded that the said ....