TaxTMI 
TaxTMI 
2021 (12) TMI 539
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.... by filing the present appeals sought to set aside the impugned orders both dated 07.06.2017 passed by the Commissioner of Income - tax (Appeals)-22, New Delhi qua the Assessment Years 2013-14 & 2014-15 on the identical worded grounds, except the difference in amount, inter alia that :- "1. On the facts and in the circumstances of the case and in law, the Ld. CIT (A) has erred in directing the Assessing Officer to exclude the amount (Rs. 3.08 crores & Rs. 0.08 for AYs 2013-14 & 2014-15 respectively) crores being the investment made by the assessee in Debt Oriental Mutual Funds under growth option for working out the amount of average investment for the purpose of computation or disallowance u/s 14A read with rule 8D merely by passi....
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....Ltd., without giving any finding in his appellate order whether the same expenses were incurred wholly and exclusively for the purpose of business." 3. Briefly stated the facts necessary for adjudication of the controversy at hand are : Assessee was into manufacturing of motorized two wheeler and auto components/spare parts for auto industry. AO during the scrutiny proceedings noticed that the assessee company has invested Rs. 86,40,64,971/- & Rs. 91,15,42,456/- in equity shares and units of mutual funds on which assessee had received dividend income of Rs. 1,085/- & Rs. 13,914/- for AYs 2013-14 & 2014-15 respectively. Assessing Officer (AO) declining the contentions raised by the assessee by invoking the provisions contained u/s 14A rea....
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....ssed by the ld. CIT (A) it does not lead to any conclusive findings as per grounds raised by the assessee company that disallowance cannot be more than exempt dividend income earned by the assessee during the year under consideration. Rather ld. CIT (A) has confused the entire controversy sought to be decided by the assessee by partly following his own order passed in AY 2012-13 but has lost sight of all the facts brought on record by the assessee. Thus, the entire findings are cryptic and incomprehensible. In these circumstances, we are of the considered view that the issue has not been examined by ld. CIT(A) by thrashing the facts in the light of the law applicable thereto. Consequently, this issue is remitted back to the ld. CIT(A) to de....
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....d no.3 of the appeal is allowed and the corresponding addition is deleted." 9. It is brought to our notice by the ld. AR for the assessee that aforesaid findings returned by the ld. CIT (A) being based upon his own order for AY 2012-13 have been confirmed by the coordinate Bench of the Tribunal in assessee's own case in ITA No.249/Del/2017 for AY 2012-13 order dated 26.02.2020. 10. We have perused the aforesaid order passed by the Tribunal which is qua identical issues as to making payment to its Associated Enterprise, M/s. Hero Global Design Ltd., for providing engineering services. Operative part of the order (supra) is as under :- "8. It was submitted before the revenue authorities that M/s Hero Global Design Ltd. rendered....
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....claimed are also of very basic nature as the basic designs are received from clients and the product is to be manufactured as per the said designs. The nature of services can at best be called a bridge with the ancillary suppliers/manufactures. The qualifications of the persons employed also do not establish any specialized technical services as none of them is even a graduate engineer. The quantum of payment is very small considering the turnover of the assessee. Moreover, once the sample production is approved, the same product is manufactured and supplied to the client in large numbers without any further payment to M/s Hero Global Design Ltd. The work done by M/s Hero Global Design Ltd could have been done by a small section in the asse....