2024 (10) TMI 650

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....T(A)] passed on 26- 02-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s 143(3) r.w.s 143(3A) & 143(3B) of the Act on 06-04-2021. 1.2 The grounds raised by the revenue read as under: - 1. The order of the learned CIT(A) is contrary to law and facts and circumstances of the case. 2. The Ld. CIT(A) erred in holding average value of only those investments will have to be taken from which the assessee derived exempted income during the year. 3. The ld. CIT (A) erred in observing that relied upon decision was not stayed / reversed, whereas in the relied upon case, the disallowance u/s 14A was invoked w.r.t. investments made in foreign companies only not Indian companies and for this reason....

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....the date of demerger to the actual effective demerger taking place. Income for which period was offered by the Appellant for tax in their return. 5. The NFAC, New Delhi / Commissioner of Income Tax (Appeals) ought to have appreciated that the TDS credit of Rs. 52,08,571/- are relatable to the undertaking whose income after demerger belongs to was included in the hands of the Appellant and hence the corresponding TDS should also have been given credit in the hands of the Appellant. As is evident, the common issue in cross-appeal is disallowance u/s 14A. The assessee also seeks TDS credit of demerged entity. Having heard rival submissions and upon perusal of case records, our adjudication would be as under. 2. Disallowance u/s ....

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....o disallowance of employees benefit expenses for Rs. 18.64 Lacs. The disallowance u/r 8D(2)(ii) has been computed as Rs. 77.31 Lacs. It could be seen that the assessee did not respond to various notices issued by Ld. AO in this regard. The impugned disallowance was added to the income of the assessee and the assessment was framed. 2.4 The Ld. CIT(A), following various decision of Special Bench of Tribunal in Vireet Investments Pvt. Ltd. (82 Taxmann.com 415) directed Ld. AO to compute disallowance by considering only those investments which have yielded exempt income during the year. The same has led to cross-appeals before us. 2.5 The Ld. AR has referred to the decision of Hon'ble Delhi High Court in the case of Era Infrastructure Ind....