2021 (9) TMI 1032

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... raised :- i) "On the facts and circumstances of the case, the Ld. CIT(A) has erred in disallowing of depreciation of Rs. 4,34,13,420/-." ii) "On the facts and circumstances of the case, the Ld. CIT(A) has erred in deleting the addition of Rs. 55,53,884/- u/s 14A read with rule 8D of the Act." iii) "On the facts and circumstances of the case, the Ld. CIT(A) has erred in disallowing the addition of Rs. 6,94,236/- on account of club services and facilities." iv) "On the facts and circumstances of the case, the Ld. CIT(A) has erred in disallowing the addition of Rs. 16,717/- u/s 36(l)(va) on account of late payment of employees' provident fund." 2. At the outset Ld. Counsel for the assessee submitted ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....icer noted that during the assessment proceedings for AY 2013-14 also, the assessee has claimed depreciation on the intellectual property asset and accordingly disallowance of Rs. 5,78,84,559/- was made. Considering the facts and circumstances and following the assessment order for AY 2013-14, a 25% depreciation on Rs. 17,36,35,678/- (i.e difference of Rs. 23,15,38,237/- (-) Rs. 5,78,84,559/-) is disallowed. Hence, the disallowance of Rs. 4,34,13,420/- has been made and returned income of the assessee. 6. In the first appeal, Ld. CIT(A) had followed the order for assessment year 2012-13, wherein this issue was examined in detail which is as under :- 'After carefully considering all the above facts and circumstances, it is he....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....by the revenue is dismissed. 8. So far as disallowance of 14A of Rs. 55,53,844/-, we find that the AO has made disallowance of Rs. 62,65,891/- made by the AO without recording any satisfaction as to what was the exempt income and the computation of disallowance made by the assessee at Rs. 3,44,109/- is not correct. Ld. CIT(A) had restricted the disallowance to the amount of exempt income following the decision of earlier years and the judgment of Hon'ble Delhi High Court. The relevant observation and the finding of the Ld. CIT(A) in this regard reads as under :- "5.2 During the course of assessment proceedings the appellant company vide its letter dated 22.11.2016, a copy of which has been given in the Paper Book had submitted b....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....vestment Pvt. Ltd. v. CIT (2015) 372 ITR 694 (Del.), CIT v. Holcim India P. Ltd., (2014) 272 CTR (Del.) 282 and Cheminvest Ltd. v. CIT (2015) 378 ITR 33 (Del.) the disallowance under section 14A read with Rule 8D of Income Tax Rules is restricted to Rs. 7,12,047/- i.e. the amount of dividend income. Since the assessee company has already made disallowance of Rs. 3,44,109/-. Further disallowance on this basis is to be made of Rs. 3,67,938/- as against disallowance of Rs, 62,65,891/- made by the Assessing Officer. Hence the assessee gets relief of Rs. 58,97,953/- (Rs. 62,65,891-Rs. 3,44,109/-). Thus. This ground of appeal is partly allowed." 9. Since the aforesaid decision is based on the principle laid down by the Hon'ble Jurisdictional H....