TaxTMI 
TaxTMI 
2023 (2) TMI 1144
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..../s 14A read with rule 8D of the I-T Act 1961 is incorrect in law and on the facts of the case & prayed for deletion. 2. That assessee be allowed Rs 19,08,26,076 as additional depreciation u/s 32(1) (iia) of preceding year (F.Y. 10-11) which was claimed 'A only & assessee is eligible to claim the balance A in current financial year (F.Y. 11-12) & prayed for it allowance in the current financial year. 3. That raising of demand of Rs 36,41,59,287/- against the assessee ignoring BIFR order is bad in law and on the facts of the case & need to be deleted. 4. That assessee's income is to be reduced by Rs 2,24,00,00,000 being earned against sale of FSI, which isn't taxable income & prayed for its reduction." 3. The rev....
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....D. The Assessee has received dividend income of Rs. 7,02,91,580/- which was claimed as exempt u/s 10(34) of the Act. The assessee has disallowed an amount of Rs. 905915/-. A suo moto u/s 14A. The total investment made by the assessee was Rs. 21.38 crores. The AO disallowed interest expenditure of Rs. 29,20,847/- attributable to income which does not form part of the total income. Before the ld. CIT(A), the assessee submitted the details of interest of Rs. 48,67,65,130/- as under: Details of Interest Particulars Amount Remarks Interest on Loan from GO1 43,34,31,714 Working capital assistance from Govt. to run Sick Mills Interest on Bank Loans for Working Capital 29,26,573 For working capital requirements of NTC ....
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.... The expenditure in relation to income which does not form part of the total income shall be the aggregate of following amounts, namely:- (i) the amount of expenditure directly relating to income which does not form part of total income; and (ii) an amount equal to one per cent of the annual average of the monthly average of the opening and closing balances of the value of investment, income from which does not or shall not form part of total income : Provided that the amount referred to in clause (i) and clause (ii) shall not exceed the total expenditure claimed by the assessee.] (3) [***]" (ii) In a case where the assessee has incurred expenditure by way of interest during the previous year whi....
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....ce with section 32(1)(iia). A concurrent reading of provisions of section 32(1) and 32(1)(iia) of the Act we hold that the assessee is eligible for 50% of depreciation allowance and additional depreciation on the plant and machinery procured. Sale of FSI: 8. Assessee for the first time has taken up the issue of capital gains arising out of sale of FSI before the ld CIT(A). The same is as under:- "Reduction in income by Rs 2,24,00,00,000 against sale of FSI: - The brief facts of the case are that assessee Computed Capital Gain considering it as Sales Price. In this regard it is respectfully submitted in the very case of CIT Vs. Sambhaji Nagar coop Hsg Society Ltd, ITA No. 1356 of 2012, Date of Order: 11.12.2014, by Hon'ble Bom....
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.... taxable. Please note that this order is after the date of filling of return as on 29.09.2012. In our case Rs. 186,85,46,000 has been shown as long Term Capital Gain. Your Goodself are requested to reduce the taxable income (MAT tax effect also) by Rs. 186,85,46,000 and oblige. It is further submitted that as held in the following cases, if any expenses (or Excessive Income) isn't claimed (or reduced) in the ROI, it can be allowed (or reduced) by A. O. during assessment proceedings:- Jute Corporation Of India Ltd. vs CIT (1991 (187) ITR 688 (SC)) National Thermal Power Co. Ltd. vs CIT (1998 (229) ITR 383 (SC) CIT vs Pruthvi Brokers & Shareholder (P) Ltd. (ITA NO 3908 of....
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....of Rs. 285.98 Lakhs which is adjusted against prior period expenses of Rs. 531.57 Lakhs. This practice has been consistently followed by assessee since inception & duly accepted by the department also in all its earlier orders for A.Y. 2007-08 & 2008-09 & 2010-11. The details of Net Prior Period Expenses as has been added back in the COI are as follows: A.Y. 2007-08 2008-09 2009-10 Amount 4,22,94,313.00 2,28,94,60,659.00 6,38,82,722.00 A.Y. 2010-11 2011-12 2012-13 Amount 5,20,36,911.00 Income(Net) 2,45,59,430.00 A.Y. 2013-14 2014-15 2015-16 Amount Income (Net) 1,57,47,097.00 49,31,02,928.00 14. The coordinate bench of Tribunal while deciding the issue for A.Y. 2009-1....