2024 (5) TMI 1584

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....venue : Shri Sandeep Kr. Mishra, Sr. DR ORDER PER M. BALAGANESH, A.M.: 1. The appeal in ITA No. 1484/Del/2023 for AY 2014-15, arises out of the order of the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as 'ld. CIT(A)', in short] in Appeal No. ITBA/NFAC/S/250/2022- 23/1050866246(1) dated 16.03.2023 against the order of assessment passed u/s 143(3) of the Income-ta....

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....cerns which were acquired mainly on amalgamation of group concern, Japyee Ventures Pvt Ltd in the year 2011-12. 98% of the entire investments were old investments in group concerns and during the year there were only 2 to 3 instances of sale/ purchase transactions which was also made in the existing group concerns of the assessee. The assessee earned exempt income in the form of dividend amounting....

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....other expenses were incurred for maintainence of those investments in the form of man hours, use of common facilities like telephone, electricity and other stationery etc. Accordingly, he ignored the suo moto disallowance made by the assessee and proceeded to make disallowance u/s 14A of the Act by directly applying the computation mechanism provided in 2nd and 3rd limb of Rule 8D(2) of the Rules ....

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....th the investment activity and made suo moto disallowance. If any mistake or deficiency is found thereon having regard to the books of account of the assessee, the ld AO is entitled to ignore the same and proceed with Rule 8D(2) of the Rules. In the instant case, it was not done by the ld AO. Moreover, as per the provisions of section 14A(2) of the Act read with Rule 8D(1) of the Rules, the ld AO ....