2021 (7) TMI 527

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ubject matter of the appeal pertains to the Assessment Year 2007-08. The appeal was admitted by a Bench of this Court vide order dated 28.01.2019 on the following substantial questions of law: "a) Whether, on the facts and in the circumstances of the case and in law, the tribunal was right in holding that the Appellant is not entitled to raise a fresh claim during the assessment proceedings under section 153A of the Act pursuant to search action under section 132 of the Act? b) Whether, on the facts and in the circumstances of the case and in law, the Tribunal was justified in confirming the decision of commissioner of Income-tax (Appeals) order and thereby upholding the disallowance of Rs. 4,94,32,158/- under section 14A of the Act?" ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ssessing Officer thereafter passed an order on 19.03.2015 by which following disallowances were made by the Assessing Officer: (i) Additional disallowance made under Section 14A of the Act of Rs. 13,80,57,241/- (Rs. 18,74,89,400/- less Rs. 4,94,32,159/- and (ii) Disallowance of claim made under Section 37(1) of Rs. 1,08,333/- being expenditure on account of club membership fees. 3. The Assessing Officer determined the total income at Rs.Nil as against the amount of returned loss of Rs. 5,87,56,498/- under normal provisions of the Act. The Assessing Officer, in the order of assessment made the interest and administrative expenses under Section 14A of the Act to the extent of Rs. 18,74,89,400/- by reference to the formula prescribed un....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....lso urged that the Tribunal erred in not appreciating that having regard to the second proviso to Section 153A, the completed assessment cannot be disturbed only in case where there is any undisclosed income found in the course of search or any incriminating documents disclosing any undisclosed income. It is also urged that the Tribunal erred in confirming the decision of the Commissioner of Income Tax (Appeals) and in upholding disallowance of Rs. 4,94,32,158/- under Section 14A of the Act. 5. On the other hand, learned counsel for the revenue submitted that the Tribunal has rightly placed reliance on the decision of Rajasthan High Court in 'JAI STEELS (INDIA) JODHPUR Vs. ACIT' 36 TAXMANN.COM 523 and therefore, no substantial ques....