TaxTMI 
TaxTMI 
2024 (12) TMI 705
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....ming to the appellant in email, passing of order u/s. 250 of the Act by Commissioner of Income-tax Appeals Unit-3, Coimbatore and National Faceless Appeal Centre (NFAC) Delhi and put on income-tax portal were without jurisdiction and hence deserve to be quashed as such as the appellant has informed by the submissions 23-10-2019, 20-12-2019 and again on 20-12-2019 that the jurisdiction of case falls at Ahmedabad and PANo. is also falls at Ahmedabad jurisdiction and subsequent returns were filed at address of Ahmedabad jurisdiction and subsequent assessments were also passed by the AO at Ahmedabad. 2. That the learned Commissioner of Income Tax (Appeals) has further erred both in law and on facts in disposing off the appeal ex-parte ....
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....o the statutory notices, representative of the assessee appeared before the Ld. AO and filed requisite details as called for. 2.2. The Ld. AO from the details filed noted that assessee is engaed in the business of trading in commodities, chemicals, capital feed etc., and has declared business income there from. 2.2.1. The Ld.AR noted that, the assessee made investment in shares/mutual funds, and earned dividend of Rs. 1,81,244/- claimed to be exempt. The Ld.AR noted that, the assessee claimed interest expenses in the P&L account of Rs. 22, 62, 510/-. 2.3. The Ld. AO called upon assessee to justify why disallowance under section 14A should not be made. The assessee in response submitted that, neither any direct expenses were incurre....
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....fore this Tribunal. 4. At the outset, the Ld.AR submitted that Ground No.1-3 are general in nature and therefore do not require any adjudication. 5. It is submitted that Ground No.4 is on disallowance upheld under section 14A red with Rule 8D of the Income tax Rules, and disallowance under section 41(1) of the act. 5.1. The Ld.AR submitted that, assessee did not make any suo moto disallowance under section 14A r.w Rule 8D of Income tax Rules. He submitted that, the direct expenses considered by the Ld.AO could not be attributed towards earning of exempt income. It is submitted by the Ld.AR that, the interest expenditure is incurred by the assessee for the purposes of business and not for making any investment to earn exempt income.....
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....ssessment year 2008-09, disallowance under section 14 A read with Rule 8D of Income tax Rule is mandatory as per section 14A(2) of the Act and therefore the assessee cannot escape from the clutches of provisions under Rule 8D. We have perused the submissions advanced by both sides in light of records 6. It is noted from the computation of disallowance u/s. 14A by the Ld. AO that, entire Finance cost debited to the profit and loss account has been considered rule 8D(2)(ii). On analysing the nature of these expenses it is noted that LC discounting charges cannot be considered towards earning of exempt income. However Bank charges amounting to Rs.10,578/- can be attributed in the ratio exempt income earned to the total income. 6.1. As....
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....le Gujrat High Court in case of CIT vs Corrtech Eergy Ltd., reported in (2015) 372 ITR 97. 6.3. Further we note that there is no relation of disallowance under Section 14A while computing the book profit under section 115JB. The reason is that explanation (1) of Section 115JB adjustment is to be worked out as clause (f) where the amount of expenditure in relation to any exempt income other than specified income is required to be added to the book profit. 6.3.1. Therefore, there is a separate mechanism provided for adjustment to the book profit of this kind of expenditure. Accordingly, lower authorities were not correct in adding notional expenditure as computed under section 14A and increasing the book profit by that sum under Section....