TaxTMI 
TaxTMI 
2022 (2) TMI 111
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.... 1. The Learned CIT (A) erred in confirming the disallowance of Rs. 20,27,2807- as sundry expenses u/s. 37(1) of the Income Tax Act, 1961 by wrongly treating the same as part of administrative expenses. 2. The Learned CIT (A) failed to appreciate the fact that the appellant suo moto on its own volition had already disallowed a sum of Rs. 6,75,804/- in its computation of income u/s 37{ 1) of the Act. 3. The Learned CIT (A) erred in not appreciating the fact that administrative expenses did not include any sundry expenses as wrongly stated by the Learned AO in his assessment order. 4. The Learned CIT (A) failed to appreciate that in view of the ITAT's decision in the own case of the appellant for earlier years and also in the case o....
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....frame or delete any of the aforesaid grounds at or before the hearing." 2. The fact in brief is that the assessee has filed a return of income declaring income at Rs. Nil on 30.11.2017. The case was subject to scrutiny assessment and notice u/s 143(2) of the Act was issued on 10.08.2018 and 27.09.2019. The remaining relevant facts are discussed while adjudicating the ground of appeal filed by the assessee as follows: "DISALLOWANCE OF SPEED MONEY U/s 37 (1) : 1. The Learned CIT (A) erred in confirming the disallowance of Rs. 20,27,2807- as sundry expenses u/s. 37(1) of the Income Tax Act, 1961 by wrongly treating the same as part of administrative expenses. 2. The Learned CIT (A) failed to appreciate the fact that the appellant suo mo....
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.... issue on identical facts, therefore, all these ground of appeal are adjudicated together. During the course of assessment the A.O noticed that assessee had claimed expenses of Rs. 1,08,11,939/- under the head office administration expenditure. The A.O stated that on perusal of the detail, it was noticed that miscellaneous expenses included entertainment expenses speed money etc. On query, the assessee explained that in the course of its business it has to incur certain expenses in the form of payment to port worker, labourer as speed money for expediting the process of loading/unloading of cargo ships from ships so that both the ships and cargo were not detained at the port for a long time as it involved substantially huge expenses. The A.....
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....rsed by the principal and therefore these expenses were actually incurred on behalf of the principals and ultimately taken by the respective principal amount. The assessee has also explained the exact process of accounting and documentation of such expenses which is also produced in the submission of the assessee elaborated in the order at page 16 to 20 to the CIT(A) order. It is noticed that ld. CIT(A) after following the decision of coordinate bench of the ITAT in the case of M/s M. Jamunadas & Company has sustained the disallowance of 25% to such expenses made by the assessing officer. In this regard the contention of the assessee that in accordance with the above referred decision of the ITAT it has already made suo moto disallowance of....
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.... 7. The assessee has not pressed this ground of appeal, therefore, the same has been stand dismissed. Additional Ground of appeal: "The Assessing Officer and the CIT Appeal erred in disallowing the expenditure of Rs. 10,00,000/- by invoking Rule 8D of the Income Tax Rules. In fact, the exempt Income from Dividend on shares were received from Group Companies and therefore no expenditure were incurred to earn that income." 8. During the course of assessment the A.O noticed that assessee has earned dividend income of Rs. 5,91,00,000/- during the year out of which Rs. 10 lac was claimed as exempt income. The assessee has suo motto disallowed an amount of Rs. 40,000/- u/s 14A being expenditure attributable to exempt income. However, the ass....