TaxTMI 
TaxTMI 
2016 (2) TMI 1305
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....ng grounds:- " 1(a) That the learned CIT(A) erred , both on facts and in law in sustaining a disallowance of Rs, 16,24,1987- towards interest u/s 14A of Income Tax Act read with Rule 8D of the Income Tax Rules, 1(b) That on the facts and circumstances of the case, the Id CIT(A) has erred in applying Rule 8D in appellant's case . 1(c) The Id CIT(A) failed to appreciate that the assessee had made investments of Rs. 10.75 Crores in earlier years from the redemption proceeds of earlier investments / Realisation from Debtors and /or interest free funds available with the assessee and as such disallowance u/s 14A with respect to interest of Rs. 10,11,698/- deserves to be deleted. 1(d) That the Id CIT(A) further erred in considerin....
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....eal of the assessee against the confirmation of disallowance of Rs. 16,24,1987 By CIT (A) u/s 14A of the act. 6. Brief fact of the case is that the assessee is a company which is engaged in the business of export and import of sugar and its products. It filed its return of income on 26.09.2010 declaring total income of Rs. 5,25,522/- and the assessment was made u/s 143(3) on 04.02.2013. During the course of assessment it was noted by AO that the assessee has shown income of Rs. 1,65,492/- by way of dividend on mutual funds which was exempt u/s 10 of the Income Tax Act and has disallowed Rs. 2,69,428/- u/s 14A of the act. Therefore the AO not satisfied with the disallowance was of the view that there has to be some more disallowance u/s 1....
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....tted that disallowance is required to be computed u/s 14A of the Act and therefore the order of the ld CIT(A) may be upheld on this count. It was further submitted that revenue is also in appeal against this grounds and therefore disallowance computed by AO may be upheld. 9. We have carefully heard the rival contention. We first address the argument of the assessee that whether disallowance u/s 14A can exceed exempt income or not. Hon'ble Delhi High Court in the case of Joint Investment Pvt. Ltd Vs. CIT in ITA NO.117/2015 dated 25.02.2015 has held that disallowance u/s 14A rwr Rule 8D cannot exceed the entire tax exempt income. Therefore respectfully following the decision of Hon'ble Delhi High Court the disallowance is required to be re....
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....re not permitted. Therefore ld AO did not considered this trust as recognized Provident Funds under Income Tax Act though it was recognized and such recognition was not cancelled by CIT. This issue is taken up by the assessee before the learned Commissioner of Income-tax (Appeals) who in turn deleted the addition stating that since the trust is already registered and learned Commissioner of Income-tax has not revoked the registration of the trust , AO is not empowered to treat it as unrecognized fund. Further CIT (A) has also recorded finding that the matter is already decided in favour of the appellant by the orders of coordinate bench for Assessment Year 2003-04 to 2007-08 dealing identical issue in favour of the assessee and the appeal o....
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....essee while computed the income under normal computation mechanism has added this, However it was not added while calculating the book profit tax u/s 115JB of the Act and therefore the AO adjusted the books profit accordingly by adding this sum. Aggrieved by this the assessee carried the matter before learned Commissioner of Income-tax (Appeals) who in turn deleted the addition and therefore revenue is in appeal before us. 16. Before us the ld DR relied on the order of AO and ld. AR submitted that this issue is covered in favour of the assessee in view of the decision of the jurisdictional High Court in the case of Khaitan Chemical and Fertilizers 175 Taxmann 194 where in identical issue has been decided in favour of the assessee and CIT....