2022 (11) TMI 890

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.... Officer under section143(3) of the Income-tax Act, 1961 (in short, 'the Act) for the Assessment Year 2012-13. The grounds of appeal raised by the assessee are as under:- "Following grounds of appeal are without prejudice to each other: 1) The Learned CIT (A) has erred in law & on facts in upholding the disallowances of Rs.l,19,82,373/-made u/s 14A r.w. Rule 8D(2)(iii) of the Income Tax Act, 1961 in the order passed by the Asst. Commissioner of Income Tax, which is bad in law. 2) The Learned CIT (A) has further erred in this connection in directing the learned AO to work out the quantum of interest under Rule 8D(2)(ii) & further in Rule 8D(2)(i) relating to investments in shares of Shree Ashtavinayak Cine Vision L....

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....9,82,373/- and added to the total income of the assessee. During the course of appellate proceedings before the Ld.CIT(A), the Ld.CIT(A) directed the Assessing Officer to recompute the quantum of disallowance under section 14A r.w.r. 8D as per the alternative plea of the assessee, after considering only those investments from which exempt income was received by the assessee as per the decision of Hon'ble Delhi High Court in the case of Cheminvest Ltd vs CIT (ITA No.749/2014). Vide paper book dated 23/07/2019 the assessee submitted that disallowance under section 14A r.w.r. 8D cannot exceed the exempt income and also placed reliance on the decision of ITAT, Mumbai Bench in Daga Global Chemicals Pvt Ltd vs ACIT ITA No.5592/Mum/2012 and Hon'bl....

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.... whom the assessee company had regular business transactions. It is also submitted that payments for purchase of all the three vehicles were made by the assessee company and these cars were used for the business purpose of the assessee company. However, on perusal of material on record, it is found that assessee has not placed on record relevant supporting evidences to demonstrate that vehicles were used for the purpose of business and copy of Board Resolution, etc. to substantiate that assessee company was authorized to purchase these vehicles in the name of the employees of the group concern, etc. Therefore, we restore this issue to the file of the Assessing Officer to decide afresh after verification and examination of the relevant suppo....