TaxTMI 
TaxTMI 
2022 (9) TMI 787
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....pposed to law, equity, weight of evidence, probabilities, facts and circumstances of the case. 2. The learned CIT[A] is not justified in upholding the disallowance of Rs.81,67,657/- made u/s. 14A r.w. Rule 8D of the Act without appreciating that the provisions of sec. 14A of the Act were inapplicable to the appellant's case in the absence of any expenditure incurred to earn exempt income and therefore, the impugned disallowance made deserves to be deleted. 2.1 Without prejudice to the above, the learned CIT[A] ought to have appreciated that the disallowance u/s. 14A of the Act cannot exceed the exempt income of Rs. 6,22,816/- earned by the appellant and therefore, the disallowance of Rs. 81,67,657/- made was highly excessive and t....
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.... and filed revised return of income on 19/12/2017 declaring a total income of Rs.1,92,97,500/- under the general provisions of the Act and book profit u/s 115JB of the Act was revised to Rs.3,69,14,485/-. The return was processed and subsequently the case was selected for scrutiny under CASS and statutory notices were issued to the assessee. During the course of assessment proceedings, the AO observed that there is investment of Rs.68.52 crores in associates and the company received dividend income of Rs.6,22,816/- which is exempt under the Income-tax Act 1961, hence, the AO applied sec. 14A and calculated the disallowance u/s 14A r.w.rl 8D. He also observed that when assessee incurred finance cost of Rs.2,00,67,165/-, in this regard the as....
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....ubmitted that the CIT(A) has rightly dismissed the appeal of the assessee, there was huge investments made by the assessee and no disallowance made by the assessee suo moto u/s 14A r.w.r 8D. The assessee was unable to substantiate that on the date of making investments he had sufficient own funds and the borrowed funds has not been utilized, every investments require cost of capital and managerial activities. The assessee has invested in his subsidiary and partnership firm and huge capitals has invested. He further submitted that the amendments made by the Finance Act 2022 is only a for the removal of doubts there was no any new sections/rules introduced and therefore it is a retrospective amendment as decided by the ITAT Gouhati Bench of t....