2018 (10) TMI 1965

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ed the following grounds of appeal: Sr No. Ground(s) Amount 1. DISSALLOWANCE UNDER SECTION 14-A Rs. 10,24,687 1.1 Demat Charges: On the facts and in the circumstances of the case, the Ld CIT(A) erred in upholding the Learned Assessing Officer ("Ld AO")'s subjecting to the disallowance under Section 14-A, as direct expenditure, Demat Charges amounting to Rs. 3,172. Rs. 3,172 1.2 Without prejudice to the above, on the facts and in the circumstances of the case, the Ld CIT(A) erred in upholding the Ld AO's disallowance under Section 14-A, of a sum of Rs. 10,21,515. Rs. 10,21,515 2. Increasing of Book Profit u/s. 115JB of the Act, by Amount Disallowed under Section 14-A On the facts and in the circumstances of the case,....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e action of Assessing Officer was confirmed. Thus, further aggrieved by the order of ld. CIT(A), the assessee has filed the present appeal before us. 3. We have heard the submissions of the ld authorised representative (AR) of the assessee and ld. departmental representative (DR) for the revenue. At the outset of hearing, the ld. (AR) of the assessee submits that that he is not pressing Ground No.1.1 of the appeal on account of smallness of amount. Considering the contention of ld. AR of the assessee, Ground No.1.1 of the appeal is dismissed. 4. Ground No.1.2 relates to disallowance under section 14A. The ld. AR of the assessee submits that there is no nexus established by the Assessing Officer between the other expenses and the exempt in....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ade. Since, it is not warranted for the year under consideration. The contention of the assessee was not accepted by Assessing Officer holding that the assessee while filing revised return of income have not made any disallowance under section 14A. The Assessing Officer without recording his dissatisfaction about the working of computation of disallowance under section 14A, disallowed Rs. 10,24,687/- to the extent of actual expenditure shown by assessee. 7. The ld. CIT(A) on the basis of decision of Tribunal for Assessment Year 2009-10 confirmed the action of Assessing Officer. The Hon'ble Apex Court in Maxopp Investment Ltd. (supra) held that if expenditure incurred has no casual connection with the exempted income, then such expenditure ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....uthorities below. We have noted that the Assessing Officer while passing the assessment order increased the book profit under section 115JB of the Act by the disallowance of section 14A. The ld. CIT(A) confirmed the action of Assessing Officer despite referring the decision of Special Bench in ACIT vs. Vireet Investment Pvt. Ltd. (supra). Considering the fact that we have already deleted the disallowance under section 14A. Hence, the raising of profit under section 115JB would automatically become infructuous. 12. Ground No.3 relates to interest under section 234B of the Act. We have noted that this ground of appeal is consequential and needs no adjudication. 13. Ground No.4 relates to charging interest under section 234C of the Act. The ....