TaxTMI 
TaxTMI 
2025 (7) TMI 1887
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....sioner of Income-tax-1(1)(1), Mumbai, u/s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as the "Act"), dated 06.12.2016 for Assessment Year 2014-15. 2. Grounds taken by the Assessee are reproduced as under: "1. On facts and circumstances of the case and in law, the order passed by Ld. CIT (A) ignoring the requests of personal hearing before passing the impugned appellate order in a violation of principles of natural justice as well as mandatory procedure prescribed in "Faceless Appeals Rules 2021," is an arbitrary order and is bad in law. The same needs to be quashed and the grounds of appeal needs to be allowed. 2. Addition uls. 14A r.w.r SD of Rs. 33,68,410/- a. On facts and circumstances of th....
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.... 20,97,729/- 3.1. The above stated share from partnership firms is after setting off share of loss from certain other partnership firms. The details of profit/loss from different partnership firms in which assessee had made investments is tabulated below: Name of Firm/LLP Rs. i) Friends Development Corporation 56,71,988 ii) Dosti Enterprises (34,73,796) iii) Dosti Development Corporation (8,217) iv) Crystal Builders & Developers (97,187) v) Dosti Sea view LLP 4,942 Total 20,97,729 3.2. While computing total income, assessee made a suo moto disallowance of Rs. 5,13,698/- u/s. 14A towards expenses in respect of exempt income earned during the year. Th....
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....hus, ld. Assessing Officer re-computed the disallowance in Rule 8D(2)(iii) by including the investments in partnership firms to arrive at a total disallowance of Rs. 38,82,108/-. Since assessee had already made a suo moto disallowance of Rs. 5,13,698/-, ld. Assessing Officer made further addition for the balance of Rs. 33,68,411/-. The details of calculation made by the ld. Assessing Officer is tabulated below: PARTICULARS Amt. (Rs.) Remarks 1. Direct expenses attributable Nil 2. Interest claimed (A)* average investments(B)/average of total assets (C) i.e. A*B/C Nil 3 0.5% of the average investments (46,33,75,670+1,08,94,67,703)/2*5/100 38,82,108/- ....
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....his issue, it is worth mentioning that assessee has also placed reliance on the decision of the Coordinate Bench in assessee's own case for Assessment Year 2016-17 in ITA No. 2043/Mum/2022, dated 13.04.2023 to claim that its case is squarely covered by the decision of the Coordinate Bench. From the perusal of the said order, from para-16, it is noted that the Coordinate Bench has observed that ld. Assessing Officer is supposed to point out mistake/deficiency in the working given by the assessee, only then he can substitute its own working with that, which is missing in the case. 5. In the light of these observations in the present case before us, we note that ld. Assessing Officer in the impugned order in para-4 has pointed out the mista....
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....stment which yielded investment income during the year, the investments in partnership firms which yielded share of profit ought to be considered. Assessee has earned share of profit only from two partnership firms, namely, Friends Development Corporation and Dosti Sea View Realty LLP. Based on the above finding, disallowance u/s. 14A by applying Rule 8D(2)(iii) is re-calculated by taking into account those investments from which exempt income has been earned by the assessee and is tabulated below: Sr. No. Investment As on 01.04.2013 (Rs.) As 31.03.2014 (Rs) Average investment (Rs) Exempt income (Rx) 1. Mutual fund 25,00,000 25,00,000 25,00,000 6,24,980 2. Capital account balance with Friends Develo....