TaxTMI 
TaxTMI 
TaxTMI 
2019 (5) TMI 2038
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.... and disposed of by a consolidated order. 2. For the sake of convenience, we shall take up the appeal in ITA No.267/Bang/2018 and the facts narrated therein. The assessee has raised the following grounds of appeal: 1. "General:- The order passed by the learned CIT(A) to the extent prejudicial to the appellant is bad in law and liable to be quashed. 2. Disallowance under section 14A:- The learned CIT(A) has erred in confirming the action of the learned AO in making disallowance under section 14A read with rule 8D amounting to Rs. 1,52,32,371. 3. The learned CIT(A) has erred in confirming the action of the learned AO in making disallowance under section 14A read with rule 8D without recording satisfaction as to h....
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....e deleted. 10. The appellant prays accordingly." 3. Brief facts of the case are that the assessee is an investment company and filed the Return of income for the assessment year 2011-12 on 30/09/2011 and also filed revised return of income on 21/12/2011 disclosing total income of Rs.7,71,44,290/-. The Return of income was processed u/s 143(1) of the Act. Subsequently, the case was selected for scrutiny under CASS and notice u/s 143(2) was issued. In compliance, the learned AR filed the required details. On verification of the information, the AO found that investments of the assessee as on 31/03/2011 are Rs.181.72 crores and out of Rs.181.72 crores Rs.111.43 crores are invested on shares/mutual funds/firms and the balance in imm....
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.... sole disputed issue is with respect to disallowance u/s 14A read with rule 8D. The learned AR contention that the AO has erred in working average value of investments on the opening balance and closing balance without considering the fact that non-dividend yielding investments are to be excluded. The learned AR referred to page 158 of the paper book where the assessee has disclosed the details of investments made in mutual funds and equity shares, similarly referred to dividend income at page 160 of the paper book and the contention of the learned AR that though the assessee is covered by the provisions of section 14A r.w. rule 8D(2)(iii) but the AO has restricted to ½% of average value of investments considering only exempted divid....
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.... 2. Disallowance under section 14A:- The learned CIT(A) has erred in confirming the action of the learned AO in making disallowance under section 14A read with rule 8D amounting to Rs. 6,15,23,280. 3. The learned CIT(A) has erred in confirming the action of the learned AO in making disallowance under section 14A read with rule 8D without recording satisfaction as to how the amount disallowed by the appellant under section 14A is incorrect. 4. The learned CIT(A) has erred in confirming the action of the learned AO in including investment in shares and mutual funds which did not result any exempt income during the year, share application money and investment in partnership firms for the purpose of making disallowance under....
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....ed or in the alternative, disallowance under section 14A read with rule 8D amounting to be Rs. 6,15,23,280 and addition under section 50C amounting to Rs. 50.00,000 be deleted. 13.The appellant prays accordingly." 9. The ground Nos.2 to 7 are in respect of disallowance u/s 14A read with rule 8D. We have decided this issue of disallowance in the assessee's own case for assessment year 2011-12 in ITA No.267/Bang/2018. The same decision shall apply. Accordingly, we restore this issue to the file of the AO with the said observations in the assessment year 2011-12 and the ground of appeal of the assessee is allowed for statistical purposes. 10. Whereas ground Nos.8 to 11 are relation to addition on applying the provisions of secti....
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....ansaction and also page 88 where consideration is referred as Rs.54,54,000/-. The contention of the learned AR that there is an endorsement on the sale deed copy that there is no undervaluation placed at page 79 of the paper book. When a query was raised to the learned AR whether the assessee has paid the stamp duty based on SRO value or as per consideration in the sale deed, the learned AR referred to calculations and confirmed that the assessee has paid the stamp duty based on SRO value. Thus, we notice that the stamp authority has registered the document without any objection for the reason that the stamp duty was paid according to his valuation. 12.1 The learned AR submitted that the assessee has raised an objection on valuation dete....