TaxTMI 
TaxTMI 
2021 (12) TMI 1254
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....f section 14A read with rule 8D(2) made by the learned assessing officer vide order dated 29/05/2019 passed under section 153A read with section 143(3) of the Income-tax Act, 1961 was confirmed. This is the only grievance in this appeal. 02 According to the facts, the assessee is a proprietor in three different concerns engaged in the business of civil contractors and builders. Assessee also owns a windmill farm for generation of wind power. He is also partner in other partnership firms and limited liability partnership. He is also a director in other companies. Thus, he earns income from salary, business profits, capital gains, and income from other sources. He filed his return of income on 31/10/2018 declaring income of Rs. 1,55,48,930....
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....ce vide order dated 29/01/2021. 04 At the time of hearing, it was found that the appeal of the assessee was delayed by 18 days and assessee has filed an application for condonation of above delay vide letter dated 19th May, 2021 stating that due to Covid-19 lockdown, the information could not be collected and therefore, though the appeal should have been filed on or before 02/0/2021, but has filed appeal delayed by 18 days. Therefore, the delay is because of sufficient cause and hence, it needs to be condoned. 05 The learned departmental representative vehemently opposed the same. 06 We have carefully considered the rival submissions and find that the delay has occurred for the reasons of Covid-19 lockdown. Therefore, we find suffi....
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....er provisions have been interpreted that only those investments from which exempt income is earned are taken into consideration for working out disallowance. He, therefore, submitted that the order of the learned CIT (A) is also not correct. 08 The learned departmental representative vehemently supported the orders of the lower authorities. It was submitted that the interpretation that has been claimed by the learned AR are in relation to old rule 8D and not new rules amended with effect from 2006. 09 We have carefully considered the rival contentions and perused the orders of the lower authorities. The undisputed facts was that during the year, the assessee has earned exempt income of Rs. 5,85,48,270/- out of investments in partnership ....
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....ed assessing officer with respect to the correctness of the claim of the assessee that he has not incurred any expenditure for earning exempt income, the disallowance under section 14A cannot be upheld. Further, even otherwise, the assessing officer should have considered for working out disallowance under rule 8D (2) of the I.T. Rules, Only those investments from which exempt income are earned during the year. This was because; there is no difference between the phraseology of rule 8D (2) as amended with effect from 01/06/2016. Section 14A(2), read with rule 8D of the Rules provides that before applying the theory of apportionment in form of Rule 8D. Ld Assessing Officer needs to record his satisfaction that having regard to the kind of th....