TaxTMI 
TaxTMI 
TaxTMI 
2024 (9) TMI 1050
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....assed against the assessment order u/s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as the "Act"), dated 09.12.2019. 2. The grounds of appeal raised by the assessee are reproduced as under: "1 For that on the facts and in the circumstances of the case, the Ld. CIT(A) erred in confirming the order of the AO making addition of Rs. 35,22,568/- u/s 14A read with Rule 8D to the total income of the appellant computed under the normal provisions. 2. For that on the facts and circumstances of the case, the interest levied u/s 234B deserves to be reduced and/or deleted. 3. For that the appellant craves leave to submit additional grounds and/or amend or alter the grounds already taken either at the time of hearing of the appeal....
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....with this petition. We further submit that for doing substantive justice in the matter and to ensure that our total income is assessed as per the settled legal principles, we request that the delay be condoned and the appeal be admitted. We submit that the delay was neither deliberate nor intentional and therefore it is a fit case where the Hon'ble Tribunal should condone the delay for rendering substantive justice." 4. The assessee has relied upon the decision in the case of Improvement Trust Vs. Ujagar Singh & Ors. (2010) 6 SCC 786 (SC) and in the case of Collector, Land Acquisition Vs. Mst. Katiji (1987) 1987 taxmann.com 1072 (SC) for condoning the delay. We have considered the application and there appears to be sufficient cause ....
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.... noted that the total expenses paid by the assessee in the Profit & Loss Account were Rs. 2,52,53,583/- and the total investment as seen from the balance sheet filed by the assessee company was Rs. 35,20,11,655/- on 31.03.2014 while the same was Rs. 37,42,30,359/- as on 31.03.2016. Out of the investments, income from investment in equity shares is exempt income. Hence, in the view of the AO there were investments from which income was not includible in the taxable income. The assessee had suo moto disallowed a sum of Rs. 2,07,455/- u/s 14A of the Act and in the computation of income. The Ld. AO was of the view that expenses were not properly appropriated towards activities from taxable income generated and activities from which no taxable i....
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.... to be considered. Reliance in this regard was placed on the judgment of the jurisdictional Calcutta High Court in the case of CIT Vs Ashika Global Securities Ltd (GA No. 2122 of 2014) dated 11.06.2018 wherein the Hon'ble High Court have held that where the assessee has not derived any exempt income from the investments, then Rule 8D cannot be applied to such investments. Similar view has been expressed in the following decisions wherein the Hon'ble Courts have held that in absence of any exempt income claimed by the assessee, no disallowance is warranted under Section 14A of the Act - Cheminvest Ltd Vs CIT (61 taxmann.com 318) (Del HC), CIT Vs Holcim India Pvt Ltd (272 CITR 282) (Del HC), CIT Vs Cortech Energy Pvt Ltd(223 taxman 130) (Guj ....
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....der relied upon in his case is as under: "4. We have heard rival contentions and perused the records placed before us. We notice that the assessee is a private limited company and is a non-banking finance company. Income of Rs. 40,32,330/ declared in the e-return filed for AY 2012-13 on 30.09.2012. During the course of assessment proceedings one of the issues raised by ld. AO was regarding disallowance u/s 14A of the Act. Since the assessee did not maintain any separate books of accounts for the purpose of ascertaining expenses incurred in relation to earning of income not includable in its total income ld. AO applied Rule 8D of the Income Tax Rules, 1962 and computed disallowance u/s 14A of the Act at Rs. 13,28,529/-. Before us ld. Couns....