TaxTMI 
TaxTMI 
2018 (5) TMI 2107
X X X X Extracts X X X X
X X X X Extracts X X X X
....ated 10.09.2015 of the CIT (A)-3, New Delhi relating to AY 2012-13. For the sake of convenience all these appeals were heard together and are being disposed of by this common order. ITA No. 5977/Del/2015 (Assessee) ASSESSMENT YEAR 2011-12 2. Ground of appeal No. 1 by the assessee reads as under. "That the CIT(A) erred in disallowing alternate claim made by the appellant on actual payment basis in respect of obtaining approval/ permission expenses incurred in relation to real estate project without appreciating that claim had been made by the appellant for the reason that department has not accepted allowability of expenses on accrual basis and appeals in respect thereof are pending for adjudication before Delhi High Court." 2.1 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rlier years, however, the department has not accepted the same. He accordingly made addition of Rs. 22,32,000/- being interest @ 8% on the outstanding balance of advance/ loan of Rs. 2.79 crores. 5.2 In appeal the Ld. CIT (A), following the decision of the Tribunal in assessee's own case for A. Y. 2006-07, deleted the addition made by the Assessing Officer. Aggrieved with such order of the CIT(A) the revenue is in appeal before the Tribunal. 5.3 We have considered the rival arguments made by the both the sides. We find identical issue had come up before the Tribunal in assessee's own case for A. Y. 2010-11. The Tribunal vide ITA No. 1237/Del /2014 and ITA 1511/Del /2014 order dated 29.07.2016 has decided the issue in favour of the ass....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he facts and in the circumstances of the case and in law, Ld. CIT(A) has erred in deleting the disallowance of u/s 14A read with Rule 8D of Rs. 2,44,53,000/- made by the Assessing Officer. 8. Facts of the case, in brief, are that during the course of assessment proceedings the Assessing Officer observed that the assessee has received tax free dividend income of Rs. 1,70,096/- on long term trade investment and claimed the same as exemption u/s 10 (34) of the IT Act. From the computation of income, the Assessing Officer observed that assessee himself has disallowed an amount of Rs. 2,50,000/- u/s. 14A of the IT Act. He therefore, asked the assessee to explain as to why the total interest of Rs. 173.33 lacs as per the P & L account should n....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... tune of Rs. 25.38 lac, against which an addition of Rs. 1.05 crore has been made. The Hon'ble Delhi High Court in Joint Investment Pvt.Ltd. vs. CIT, vide its judgement dated 25.2.2015, has held that the disallowance u/s 14A cannot exceed the amount of exempt income. The Hon'ble Delhi High Court in the case of CIT vs. Holcim India Pvt.Ltd. (20.143) 90 CCH 081-DEL-HC, has held that there can be no disallowance u/s 14A in the absence of any exempt \ income. The rationale behind these judgements is that the amount of \ disallowance u/s 14A should not exceed the exempt income. Since the total \ exempt income in the instant case is Rs. 25,38,020/-, we direct that the disallowance u/s 14A be restricted to Rs. 18,01,968/- (Rs. 25,38,020- R....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he immediately preceding assessment year. The Tribunal vide para 15 of the order has discussed the issue and dismissed the ground raised by revenue on this issue by observing as under :- As far as ground no. 2 of assessee's appeal regarding disallowance u/s 14A of the Act is concerned, it is seen that this ground correspond to ground no. 2 of Department's appeal. The assessee company had received dividend income of Rs. 70,088/- during the year which was claimed as exempt u/s 10(34) of the Act and it had suo moto made a disallowance of Rs. 21.87 lacs. It is also seen that the AO has not examined the calculation as submitted by the assessee company in this regard and has also not recorded any satisfaction to the effect that the disallowanc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e assessee's appeal needs no further adjudication. 11. Since, in the instant case also the assessee itself has disallowed an amount of Rs. 2.50 as against actual dividend of Rs. 1,70,096/- therefore, following the decision of the Tribunal in assessee's own case in the immediately preceding assessment year which are in consonance with the decisions of Hon'ble Delhi High Court, we find no infirmity in the order of the CIT(A). Accordingly the same is upheld and the ground raised by the revenue is dismissed. 12. In ground No.3 being general in nature and therefore, dismissed. ITA No. 6477/Del/2015 13. Ground of appeal No.1 by revenue reads as under. Whether on the facts and in the circumstances of the case and in law, Ld. CIT (A) ha....