TaxTMI 
TaxTMI 
2022 (1) TMI 783
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.... "1. That both the learned lower authorities have grossly erred in disallowing interest expense to the tune of Rs. 12,02,094/- (out of total expense of Rs. 20,59,791/-) on the ground that the said proportionate expense claimed by the Appellant was for earning exempted income i.e. share in profit. 2. That on the facts and circumstances of the case as well as law on the subject, both the learned lower authorities have erred in disallowing interest expense to the tune of Rs. 12,02,094/- without considering the submissions made by the Appellant. 3. That both the learned lower authorities have failed to appreciate that the Appellant is a partner in various partnership firms and during the year under consideration she h....
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.... case. In this respect, the Appellant had relied upon the judgment of the Hon'ble Tribunal in case of The Asst.Commr. of Income Tax Vs. Shri Harish P Shah - ITA No.5610/Mum/2009 (AY 2006-07) which is also ignored by the learned Commissioner (Appeals). Therefore, the Appellant craves leave to refer to and rely upon the said judgment once again. 5. That the Appellant submits that since she had not utilized full amount of interest paid by her, there does not arise any question of disallowance of interest under section 14A as done by the learned Assessing Officer in the impugned order. 6. It is therefore prayed that the above addition of Rs. 12,02,094/- made by the learned assessing officer may please be deleted." 2. Br....
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....of Rs. 12,02,094/- under section 14A. On appeal before Ld. Commissioner of Income Tax (Appeals) [CIT(A) for short], the Ld. CIT(A) upheld the order of Assessing Officer. The Ld. CIT(A) held that Assessing Officer after recording factual position disallowed @ 58.36% interest expenses which corresponding the proportionate to exempt income earned from the partnership funds. Further, aggrieved assessee has filed present appeal before this Tribunal. 3. We have heard the submission of Ld. Authorized Representative (AR) for the assessee and the Ld. Sr. Departmental Representative (DR) for the Revenue. The Ld. AR for the assessee submits that Assessing Officer made disallowance under section 14A without following the formula prescribed under Rul....
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....nce as prescribed under section 14A was furnished before the Assessing Officer or not. The Ld. AR of the assessee submits that assessee's suo motu disallowed interest expenses of Rs. 2,50,212/-. The Ld. AR of the assessee further submits that assessee is ready and willing to furnish the working of disallowance under section 14A in accordance with formula of Rule 8D. 6. On the other hand, Ld. Sr. DR for the Revenue supported the order of lower authorities. 7. We have considered the rival submission of both the parties and perused the orders of lower authorities. We find that the Assessing Officer while passing the assessment order identified the issue of disallowance under section 14A, by examining the fact that assessee had earned exe....
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....5,965 23,58,289 4482127 Krishna Trendz 25,10,277 16,17,292 2063760 Shree Ramdev Associates 2,63,505 170,292 266815 Total 1,82,58,835/- 11740811 Average value of investment 1,49,99,823/ Working of average total asset Total asset on 31.03.2014 Total asset on 31.03.2014 Average value of total asset Total asset of balance sheet 24,190,567 35,826,216 3,00,08,392 A. Disallowance u/s 14A on the basis of interest paid on new u/s loan taken The assessee has made disallowance u/s 14A on proportionate interest paid on new capital introduced in the partnership firm and new unsecured loan taken. Working of interest paid on new loan taken T....