2022 (5) TMI 680

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....s. 143(3) of the Act on 22.03.2016. 2. The grounds raised by the assessee read as under: 1. On the facts and circumstances of the case the learned CIT (A)-3 Coimbatore is not justified in sustaining the disallowance of Rs.1,32,09,071/- made under section 14A of the Act. The position accepted by the AO is that, the appellant earned an exempt income of only Rs.1250/- during the financial year 2012-13. It has been judicially settled by the Apex court that disallowance under 14 A can't exceed exempt income. 2. On The facts and circumstances of the case the learned CIT (A) -3 Coimbatore is not justified in sustaining the addition under section 68 of the act to an extent of Rs.21,23,000/- in the total addition of Rs.26,74....

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....ances, upon confirmation in the impugned order, are in further challenge before us. 3. Disallowance u/s. 14A 3.1 The assessee earned exempt income of Rs.1,250/- and accordingly, Ld. AO computed disallowance u/s 14A in terms of Rule 8D. The disallowance worked out to be Rs.132.09 Lacs which was interest disallowance of Rs.0.28 Lacs u/r 8D(2)(ii) and indirect expense disallowance u/r 8D(2)(iii) for Rs.131.81 Lacs. Though the assessee raised various arguments during appellate proceedings, however, the same were dismissed and the additions were confirmed. Aggrieved, the assessee is in further appeal before us. 3.2 Upon perusal of documents on record, it could be seen that the assessee maintain separate accounts for personal transact....

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....assessee is in further appeal before us. 4.2 We find that the additions have been made on the ground that the sales being reelected by the assessee were fabricated to accommodate the cash deposits and credits are appearing in the account of Ms. Maya Dalmia (wife of the assessee) on various dates at a figure of Rs.19,900/- each. However, we find that M/s Vinayaka Tea Company has admitted sale of Rs.34.26 Lacs and earned profit of Rs.3.43 Lacs during the year. The same has been accepted by Ld. AO which would lead to a conclusion that the sale could not be termed as fabricated. 4.3 Proceeding further, the assessee has received loan on various dates from the wife which is partly in cash and partly through banking channels. The loan aggreg....