AI Drafter 
TaxTMI 
TaxTMI 
2021 (3) TMI 1435
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....gislative intention brought forward by circular no. 5/2014 that the disallowance u/s 14A are allowed even if no exempt income is earned. 2. On the facts and circumstances of the case the Ld.CIT(A) has erred in deleting disallowances of expenses of Rs. 1,89,45,379/- by not adjudicating entirely on merits on the cogent reasons brought on record by the AO in the assessment order justifying the disallowances. 3. On the facts and circumstances of the case the Ld.CIT(A) has erred in deleting disallowance made on account of depreciation on software licences @ 25% by relying on the order of his predecessor and without assigning any specific reasons. 4. On the facts and circumstances of the case the Ld. CIT(A) has erred in....
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....siness reasons and, therefore, no disallowance u/s 14A of the Act r.w.r. 8D of the Rules is called for. 7. Reply of the assessee was considered but was not accepted by the Assessing Officer who was of the firm belief that for earning exempt income, certain expenses need to be disallowed as per provisions of sec. 14A of the Act r.w.r. 8D of the Rules. The Assessing Officer, accordingly, computed the disallowance at Rs. 20,84,878/-. 8. Proceeding further, the Assessing Officer noticed that the assessee has claimed expenses of Rs. 1,89,45,379/- out of total expenses claimed. 9. During the course of scrutiny assessment proceedings, the Assessing Officer noticed that the assessee has carried on the activity of sale of contents on behalf....
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....ich has yielded exempt income. 14. Before us, the ld. DR strongly supported the findings of the Assessing Officer. 15. Per contra, the ld. counsel for the assessee reiterated what has been stated before the lower authorities. 16. We have given thoughtful consideration to the orders of the authorities below. It is true that the assessee has earned dividend income which has been claimed as exempt. It is equally true that certain expenses need to be disallowed u/s 14A of the Act r.w.r. 8D of the Rules. There is no dispute that the assessee has received dividend income only from one company, namely, Times of Money Ltd. We are of the considered view that the Assessing Officer should have considered only those investments which yielded e....
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....wn income from these sources, the assessee stated that the Medianet business consisted of a PR brand which was managed by the assessee company on behalf of its holding company, Benett Coleman and Co. Ltd till 30.09.2004. The holding company withdrew this right from the assessee company from 30.09.2004 and handed over this business to a new group company called Optimal Media solutions Ltd. After the termination of this line of business in the immediately preceding year, the assessee claimed not to have been engaged in rendering any services relating to Medianet Business. The assessee also furnished particulars of income earned by new company, M/s Optimal Media Solutions Lt., from the business. Similarly, regarding the sale of contents, the a....
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..... This was done in accordance with the percentage of expenses incurred by the assessee for the A Y 2004-05 when the assessee was having these business from its holding company. Such businesses were withdrawn by the holding company from the assessee w.e.f 1.10.2004. The opinion of the AO that though there was no income to the assessee from these businesses, still it was incurring expenses for them, is unfounded. On a specific query, the Id. DR failed to draw our attention towards any specific expenditure incurred by the assessee qua these businesses withdrawn by the holding company. The AO made disallowance of Rs. 16.12 crore simply by means of a mathematical exercise carried out by him. If he found the expenditure incurred by the assessee t....