TaxTMI 
TaxTMI 
2022 (8) TMI 584
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....ore us for the sake of brevity. 3. Both the appeals filed by the assessee before us are delayed by 411 days. Along with the present appeals, assessee has filed separate application seeking condonation of delay in filing the appeals, which is also supported by an affidavit sworn by the assessee. In the application, the assessee has submitted as under : "2. Your appellant is a senior citizen aged 80 years and is suffering from various ailments. 3. On the receipt of the impugned order I forwarded the same to my Chartered Accountant Mr.Bharat M. Pathak for further necessary action. Mr Bharat M. Pathak did not take any action on the same. 4. Due to my old age and medical problems this matter skipped my mind and it remained to be attended. 5. It is for this reason that the appeal could not be filed in time. 6. On 18 February, 2020 I met Shri RK Jhunjhunwala who had earlier filed appeals for me upto assessment year 2009-10, he asked me what was the position of the assessment in my case on account of disallowance under section 14A for subsequent years. 7. I told him that I would check up and revert to him. On checking up I realized t....
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....ining to this issue, as emanating from the record, are: The assessee is an individual and has conducted business in propriety firm, where the main activity was trading in securities and holding investments in his personal account. For the assessment year 2011-12, assessee filed his return of income on 24/09/2011 declaring total income of Rs. 32,41,597. During the year, assessee has received dividend of Rs. 67,90,256 and long term capital gain of Rs. 1,17,73,540, which was claimed as exempt under section 10 of the Act. Since, the assessee has not allocated any expenses towards earning such tax free income, assessee was asked to show cause as to why expenses attributable to earning the dividend income should not be disallowed under section 14A of the Act. In reply, assessee submitted that no expenditure is incurred for earning non-taxable income and the assessee has not borrowed any funds and therefore there is no interest payment either. The Assessing Officer vide order dated 26/03/2014 passed under section 143(3) of the Act for assessment year 2011-12 held that certain percentage of the expenses claimed by the assessee would definitely be attributable to tax-free income earned by t....
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....he Act, read with rule 8D of the Rules, we also make it clear that before applying the theory of apportionment, the Assessing Officer needs to record satisfaction that having regard to the kind of the assessee, suo motu disallowance under section 14A was not correct. It will be in those cases where the assessee in his return has himself apportioned but the Assessing Officer was not accepting the said apportionment. In that eventuality, it will have to record its satisfaction to this effect. Further, while recording such a satisfaction, the nature of the loan taken by the assessee for purchasing the shares/ making the investment in shares is to be examined by the Assessing Officer." Further, Hon‟ble Supreme Court in Godrej & Boyce Manufacturing Company Ltd. Vs DCIT: [2017] 394 ITR 449 (SC), observed as under: "37. We do not see how in the aforesaid fact situation a different view could have been taken for the Assessment Year 2002-2003. Sub-sections (2) and (3) of Section 14A of the Act read with Rule 8D of the Rules merely prescribe a formula for determination of expenditure incurred in relation to income which does not form part of the total income under the Act i....
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....4A read with Rule 8D. Accordingly, the Assessing Officer is directed to delete the same. As a result, grounds raised by the assessee are allowed. 13. In the result, appeal by the assessee for assessment year 2011-12 is allowed. ITA no.1392/Mum./2020 Assessment Year - 2013-14 14. In this appeal, the assessee has raised following grounds: "1) On the facts and in the circumstances of the case the Learned CIT(A) erred in law and in facts in confirming the disallowance of Rs 16,62,672/- made by the Assessing Officer: a) Without recording his satisfaction as to why the assessee's claim that no expenditure was incurred for the purpose of earning exempt income was incorrect. b) The actual expenditure claimed by the appellant in computing its income for the year was only Rs.4,60,890/- and the disallowance could not exceed the expenditure claimed by the appellant. 2) The appellant prays that the disallowance of Rs.16,55,520/- may please be deleted. 3) The Order of the Learned CIT(A) and the Learned Assessing Officer being contrary to law, evidence and facts of the case deserves to be set aside, amended or modified." 15. The only....