2021 (10) TMI 504

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.... Ld. Sr. DR ORDER Manoj Kumar Aggarwal, Accountant Member 1. Aforesaid appeal by assessee for Assessment Year (A.Y.) 2016-17 arises out of the order learned Commissioner of Income-Tax (Appeals)-49, Mumbai [CIT(A)], dated 24/01/2020 in the matter of assessment framed by Ld. Assessing Officer (AO) u/s. 143(3) r.w.s. 147 on 28/12/2018. The effective grounds read as under:- 1. The Ld....

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....ssessee is stated to be engaged in service sector and entertainment industry. The assessee earned exempt dividend income of Rs. 96.29 Lacs and offered suo-moto disallowance of direct expenses for Rs. 0.07 Lacs in the return of income. However, Ld. AO making a contrary observation that the assessee did not offer any disallowance, computed aggregate disallowance of Rs. 11.88 Lacs as per Rule 8D whic....

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....other argument is that while computing the disallowance, only those investments are to be considered which have yielded exempt income during the year. This plea is also to be rejected since after amendment to Rule 8D w.e.f. 02/06/2016, the computation u/r. 8D has undergone change and it has been made clear that the amount equal to 1% of the annual average of the monthly averages of the opening and....

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....s. This ground stand partly allowed for statistical purposes. 3. Repair & Maintenance 3.1. Upon perusal of Profit & Loss account, it transpired that the assessee incurred expenditure of Rs. 53.12 Lacs which was in the nature of installation of lawn tennis court, repairs of boundary wall, supply of aluminum sheets, electrical works, purchase of water closet, fabrication charges, hardware item....