TaxTMI 
TaxTMI 
2021 (8) TMI 1162
X X X X Extracts X X X X
X X X X Extracts X X X X
.... appeal. Thereafter, the assessee filed four additional grounds of appeal on 10/07/2019. On the same date the assessee filed combined grounds of appeal i.e. original grounds + additional grounds. Some of the additional grounds raised were alternate grounds to the original grounds. 3. Shri Ronak Doshi appearing on behalf of the assessee submitted at the outset that he is not pressing additional grounds No.I, II & III. Thus, the effective grounds of appeal for adjudication are as under: "Ground I: On the facts and circumstances of the case and in law, the Ld. AO erred in making a disallowance amounting to Rs. 67,59,6307- u/s 14A of the Act read with Rule 8D of the Income Tax Rules, 1962 ("the Rules"). The Appella....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ys that the suo moto disallowance made by the Appellant be deleted while computing book profit u/s. 115JB of the Act." 4. The ld.Authorized Representative of the assessee submitted that in ground No. I, III, IV and additional ground No. IV of appeal, the assessee has assailed disallowance made under section 14A r.w. Rule 8D. The ld. Authorized Representative of the assessee pointed that during the period relevant to assessment year under appeal, the assessee has earned dividend income of Rs. 81,66,391/-. The assessee suo-motu made disallowance of Rs. 64,51,340/- under section 14A of the Act in respect of exempt income. The said disallowance is primarily towards interest expenditure. The Assessing Officer while passing draft assessment or....
X X X X Extracts X X X X
X X X X Extracts X X X X
....,000/- hence, the same can be disallowed under Rule 8D2(i). 4.1. The ld.Authorized Representative of the assessee further submitted that the Assessing Officer has erred in invoking provisions of section 14A r.w.r. 8D under MAT provisions. The ld.Authorized Representative of the assessee submitted that the issue is now settled by the Special Bench of the Tribunal in the case of ACIT vs. Vireet Investments Pvt. Ltd., 82 taxamann.com 415. The ld.Authorized Representative of the assessee further submitted that the Hon'ble Jurisdictional High Court in the case of CIT vs. Bengal Finance & Investments Pvt. Ltd. in Income Tax Appeal No.337 of 2013 decided on 10/02/2015 has upheld the decision of Tribunal, wherein it was held that while compu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....smissing appeal of the assessee. The ld. Departmental Representative submitted that DRP has recomputed disallowance under Rule 8D and restricted the disallowance to Rs. 3,08,000/- only in addition to suo-motu disallowance made by the assessee. The ld. Departmental Representative submitted that if contention of the assessee is to be admitted then the assessed income would be less than the returned income. In respect of assessee's claim of interest income on share application money the ld.Departmental Representative submitted that the DRP rejected assessee's claim as the assessee failed to furnish necessary documents. 7. Both sides heard, orders of authorities below examined. In respect of disallowance u/s. 14A r.w.r. 8D the content of the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he Board Resolution dated 21/12/2012 at page 98 of the paper book. A perusal of Board Resolution shows that 45,00,000 equity shares of Rs. 10/- each were allotted to M/s. Piramal Enterprises Ltd. for cash at par. The shares were allotted to M/s. Piramal Enterprises Ltd. on the same date. This fact is evident from the return of allotment furnished by the assessee in prescribed form before the Registrar of Companies (at page 99 to 103 of the paper book). Now, the short dispute is whether interest on loan amount should be allowed as expenditure upto the date of application for allotment of shares or the date of allotment of shares. Similar issue had come up before the Pune Bench of Tribunal in the case of S.R. Thorat Milk Products Pvt. Ltd.....