TaxTMI 
TaxTMI 
2022 (1) TMI 1100
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....ect in applying section 14A of the Income-tax Act, 1961. 2. The Ld. A.O. (and Ld. CIT(A)) has erred in increasing disallowance u/s. 14A by Rs. 14,24,055/- 2.1) The Ld. A.O. (and Ld. CIT(A)) has erred in not considering the fact that assessee has Huge Reserves and Interest free funds. 2.2) The Ld. A.O. (and Ld. CIT(A)) has erred in not considering the fact that there is huge Interest Income which should be set off against Interest income while applying Rule 8D. 3. The appellant craves its right to add to or alter the Grounds of Appeal at any time before or during the course of hearing of the case." 2. The brief facts in this case are that the assessee company is a domestic private limited company engage....
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.... 5. At the very outset, the ld. Counsel for the assessee submitted that the issue with regard to the disallowance u/s. 14A has been decided in the same facts and circumstances in assessee's own case for A.Y. 2013-14 in ITA No. 360/PUN/2018 dated 20.05.2021. The ld. DR fairly conceded the submissions of the assessee. 6. In the above referred decision, the facts were as follows: "4. The brief facts pertaining to this issue are that the assessee has made huge investment to the tune of Rs. 15.30 Crores as against the share capital and reserves of Rs. 37.11 Crores as shown in the Balance Sheet. That however as evident from the order of the Assessing Officer vide Para 4.2 and order of the Ld. CIT(Appeals) vide para 5.1 of their ....
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....essee has not established through evidences and relevant documents that the investments were made out of its own reserves and interest free funds. The Authorities below, therefore, was unable to have an opportunity to examine the interest free funds available with the assessee via-a-vis the investment made during the relevant year under consideration. The case laws relied upon by the assessee in its own case by the Co-ordinate Bench of the Tribunal (supra.) is substantially distinguishable on facts for the reason that in this relevant year, factually it was not established by the assessee and neither therefore, it was examined by the Sub ordinate Authorities that investments were made by the assessee in the year under consideration only fro....
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.... regard to the education cess. The ld. Counsel for the assessee submitted that the said issue raised by the assessee is purely legal and raised for the first time before this Tribunal. Since, the Education Cess paid by the assessee available with the respondent revenue which does not require any further examination of facts and prayed to allow the additional ground. Further, he submitted that this Tribunal taking support from the decision of Hon'ble High Court of Bombay in the case of Sesa Goa Ltd. reported in 423 ITR 426 directed the AO to allow deduction paid towards Education Cess. 10. After hearing both the parties, we note that the assessee paid Education Cess while computing the taxable income under normal provision of the I.T.....