TaxTMI 
TaxTMI 
2021 (10) TMI 573
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....for short). The subject matter of the appeal pertains to the Assessment year 2008-09. The appeal was admitted by a bench of this Court on the following substantial questions of law: (i) Whether the tribunal was justified in law in not holding that the learned Assessing Officer has not recorded satisfaction as per provisions of Section 14A of the Act consequently the addition of Rs. 59,11,624/- under Section 14A is liable to set aside on the facts and circumstances of the case? (ii) Whether the tribunal was justified in law in confirming the disallowance of Rs. 59,11,624/- under Section 14A of the Income Tax Act, 1961 read with Rule 8D of the Income-Tax Rules, 1962 on the facts and circumstances of the case? (iii) Whether the t....
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....pectively. 3. The assessee filed an appeal before the Commissioner of Income Tax (Appeals) who by an order dated 30.11.2011 upheld the additions made by the Assessing Officer, except disallowance of interest on advance for capital goods. The assessee thereupon preferred an appeal before the tribunal. The tribunal by an order dated 18.07.2012 partly deleted the addition made with regard to sales promotion expenses, deleted the additions with regard to PF and ESI contributions under Section 36(1)(va) of the Act and upheld the addition with regard to disallowance under Section 14A of the Act read with Rule 8D of the Rules. In the aforesaid factual background, this appeal has been filed. 4. Learned Senior counsel for the assessee submitted th....
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....GATHI KRISHNA GRAMIN BANK VS. JCIT', (2018) 95 TAXMANN.COM 41 (KAR.), 'PCIT VS. CARAF BUILDERS & CONSTRUCTION (P.) LTD.', (2019) 112 TAXMANN.COM 322 (SC), 'CIT VS. MICROLABS LTD.', (2017) 79 TAXMANN.COM 368 (KAR.), 'CIT VS. RELIANCE UTILITIES & POWER LTD.', (2009) 178 TAXMAN 135 (BOM.) and 'CIT VS. HDFC BANK LTD.', (2014) 49 TAXMANN.COM 355 (BOM.). 5. On the other hand, learned counsel for the revenue submitted that condition for recording satisfaction as prescribed under Section 14A of the Act is not attracted to the facts of the case as there is no suo motu disallowance. In this connection, reliance has been placed on decision of the Supreme Court in 'MAXOPP INVESTMENT LTD. VS. COMMISSIONER OF INCO....
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....diture has been incurred by him in relation to income which does not form part of the total income under this Act : Provided that nothing contained in this section shall empower the Assessing Officer either to reassess under section 147 or pass an order enhancing the assessment or reducing a refund already made or otherwise increasing the liability of the assessee under section 154, for any assessment year beginning on or before the 1st day of April, 2001. 7. Thus, it is evident that Assessing Officer can determine the amount of expenditure incurred in relation to an exempt income if the Assessing Officer having regard to accounts of the assessee is not satisfied with the correctness of the claim of the assessee but it has not incurred....
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....rofit from the partnership firm during the year and in fact the partnership firm had incurred the loss of Rs. 11,97,926/- and no exempt income was earned by the assessee. In the absence of any exempt income during the year, there could not be any disallowance under Section 14A of the Act. [SEE: STERLING DEVELOPERS (P) LTD. AND QUEST GLOBAL ENGINEERING SERVICES PVT. LTD. SUPRA]. For the reasons assigned by us supra, second and third substantial questions of law are also answered in favour of the assessee. 10. The assessee had made fake advances to M/s Lakshmi Estate and later became a partner to the extent of 75% share in the partnership firm from the year 2003 onwards. It is claimed by the assessee that it had not borrowed funds for....