2023 (4) TMI 531

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....011-12 respectively. 2. Grounds taken in these appeals are as under: ITA No.5907/Del/2019 for AY 2010-11 "1 That on the facts and in the circumstances of the case, the Ld. Commissioner of Income Tax (Appeals) (hereinafter 'Ld. CIT(A)') erred on facts and in law by upholding the assessment made by the Ld. Assessing Officer (hereinafter 'Ld. AO') by assessing the total income of the Appellant at Rs. 213,37,89,875/- as against the income of Rs. 213,28,15,002/- claimed by the Appellant. 2. That on the facts and in the circumstances of the case, the Ld. C1T(A) erred on facts and in law in upholding the disallowance of Rs. 9,74,876/- made by the Ld. AO under section 14A of the Income-tax Act, 1961 (hereinafter 'the Act') a....

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....in law in upholding the order of the Ld. AO whereby notional expenditure has been disallowed on the basis of surmises and conjectures. 3. That on the facts and in the circumstances of the case, the Ld. CIT(A) erred on facts and in law in upholding the order of the Ld. AO whereby the amount of tax as well as the refund due to the Appellant has been computed incorrectly. 4. That on the facts and in the circumstances of the case, the Ld. CIT(A) erred on facts and in law in upholding the order of the Ld. AO whereby the Ld. AO has incorrectly imposed interest under section 234C of the Act. 5. That on the facts and in the circumstances of the case, the Ld. CIT(A) erred on facts and in law in upholding the order of the L....

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....s'), without any proper recording of satisfaction as is required under section 14A of the Act. 2.2 That on the facts and in the circumstances of the case, the Ld. CIT(A) erred on facts and in law in upholding the order of the Ld. AO whereby expenditure has been disallowed by a wrong application of Rule 8D(2) of the Rules and without following the principles laid down in various judicial precedents. 2.3 That on the facts and in the circumstances of the case, the Ld. CIT(A) erred on facts and in law in upholding the order of the Ld. AO whereby the order is passed without adhering to the instructions given by the Hon'ble Indore Bench of the ITAT vide the order dated 14th July 2017 in the Appellant's own case in ITA Nos. 583 &....

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....y u/s 139(1) of the Act on 24/09/2010 declaring a total income of Rs.213,28,15,002/-. It is not in dispute that assessee had received a sum of Rs.9,74,876/- towards dividend income, which has been claimed as exempt u/s 10 of the Act in the return of income. The assessee has not made any suo moto disallowance of expenses u/s 14A of the Act. 4.1. This is a second round of appeal before this Tribunal. This Tribunal in the first round of proceedings in ITA No.570 & 571/IND/2013 dated 14/07/2017 had set aside the matter to the file of the Ld. Assessing Officer ("Ld. AO", for short) with the direction to the Ld. AO to record proper satisfaction, which is mandated in terms of section 14A (2) and 14A(3) of the Act read with Rule 8D(1) of the Inc....

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....T Circle No. 5/2014 dated 11.02.2014 which lays down that even if no exempt income is earned during the year, disallowance u/s 14A read with rule 8D of the rules shall be applicable. I am therefore satisfied that the claim of the assessee that just because much activity is not required upon computing the disallowance under rule 8D is not acceptable. Accordingly disallowance under section 14A read with rule 8D of the rules is worked out as under:- Investment on 1st day i.e. 01.04.2009 83,54,09,000/- Investment on last day i.e. 31.03.2010 66,99,61,000/- Average investment 75,26,85,000/- Disallowance 0.5% of average investment 37,63,425/-" 4.2. We find that the aforesaid satisfaction recorded by the Ld. A....