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2021 (6) TMI 453
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....e file/records perused. 2. The Revenue has proposed the following substantive grounds in the instant appeal: "1. The Ld.CIT(A) erred both in law and facts of the case. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the disallowances of Rs. 7,40,94,331/- made u/s.14(A) r.w.r.8D of the IT Rules disregarding the CBDT circular No.5 of 2014 dated 15.02.2014 which mandates the Assessing Officer to make such disallowance even if the investments do not yield exempt income? 3. On the facts and in the circumstances of the case and in law, the Ld.CIT(A) erred in deleting the addition of Rs. 199,98,23,666/- made towards disallowance of interest on capital liabilities based....
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....tinad Logistics Pvt. Ltd., [80 taxmann.com 221] (Madras); ii. CIT Vs. Corrtech Energy Pvt. Ltd., [223 Taxman 130] (Guj); iii. Cheminvest Ltd., Vs. CIT (2015) [378 ITR 33] (Del) holds that Section 14A read with Rule 8D applies only in relation to an assessee's exempt income and not otherwise. We therefore affirming the CIT(A)'s findings deleting the impugned disallowance. The Revenue fails in its first substantive ground therefore. 4. We next come to Revenue's second substantive ground that the Assessing Officer had rightly added assessee's interest on capital liabilities to the tune of Rs. 199,98,23,666/- which stands deleted in the CIT(A)'s order after admitting additional evidence for violation of Rule 46A of the I....
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....same logic which the assessee adopted for the purpose of depreciation, only 50% of interest expenses are to be allowed and the balance of Rs. 199,98,23,666/- is to be disallowed. 7.3 It was explained by the appellant that interest of Rs. 399,96,47,332/- pertains to interest on all the loans taken including the loan taken in earlier years for meeting the cost of fixed assets and working capital. The appellant further submitted that total fixed assets added during the year were Rs. 388.64 Crores on which obviously the assessee could not have claimed interest of Rs. 399.90 Crores. 7.4 After considering the information on record and submissions of the appellant, I consider there no merit in addition made by the Assessing Offic....
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....ative is fair enough not being able to pinpoint any violation of Rule 46A of the Income Tax Rules since the CIT(A) has not admitted any additional evidence filed at the assessee's behest. Coupled with this, it has come on record that the assessee has itself disallowed in its computation, a sum of Rs. 2240.42 Crores [(expenses qua power purchase cost, finance and employee costs (supra)]. This is what led the CIT(A) to delete the impugned disallowance/addition. We accordingly affirm the same since there is no rebuttal to correctness thereof coming from the Revenue side. 6. We are now left with last issue of consumer contribution amortization disallowance of Rs. 39,44,46,826/- made by the Assessing Officer and deleted in the CIT(A)'s ord....
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.... ============= Document 1 9.1 The eight ground of appeal is as under: 8. The Assessing Officer is not justified in disallowing 1398,54,00,000/- stating that this amount represents provisions which are not allowable. The Assessing Officer erred in construing explanation offered in Directors Report for loss suffered during the year as representing provisions made when most of such amounts are expenses incurred during the year because of which the Appellant suffered losses during the year. 9.2 In para 2.1 of accounts the Directors have explained the reasons for loss of 3436.07 Crores during the year against profit of 3.21 Crores in F.Y.2011-12 and while explaining such losses the Directors have listed out some of t....
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.... actuarial valuation), O&M GPF liability at 7.21 Crore and increase in other expenses at 6.28 Crore. 85.30 Revenue from The additional power purchase cost for sale of power the year 2012-13 of 85.30 Crore not treated as additional subsidy receivable from GoAP. 8 9.72 Trade Receivables 3638.96 Total claims Provision hs been made on doubtful receivable for an amount of 9.72 Crore receivable from BIFR consumers of HT Out of the above, the assessee voluntarily disallowed the following amount in its computation. (अपील) Government Receivables FSA pending in court 2,050.89 Crores Total disallowed in COI 189.53 Crores *2240.42 Crores On the other hand t....