TaxTMI 
TaxTMI 
2024 (11) TMI 1610
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....17. 2. The grounds raised by the assessee are as under: "1. The learned CIT(A) has erred in law and facts in upholding addition of Rs.54,16,974/- disallowed U/s 14A under the Act without properly appreciating the facts and without properly appreciating legal decisions in this regard submitted before him. 2. He has erred in law and facts in not appreciating and following the decision of Honourable ITAT, Ahmedabad in the case of assessee itself passed for previous years. On the issue of addition U/s 14A. 3. He has erred in law and facts in wrongly applying the legal decisions mentioned in para 4.4 of his order including CBDT circular dated 11/02/2014. 4. On the facts of the assessee the disallowance U/s ....
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....m bank overdraft interest 3257528 18.30% 596128 TOTAL 922641 6. The AO however worked out the disallowance invoking Rule 8D of the Income Tax Rules, 1962 and computing the disallowance as per the formula prescribed therein. Thus a total disallowance of Rs.63,39,616/- was computed, the calculation of which is as under: I The amount of expenditure directly related to income which does not form part of total income 9,22,642/- 1. Interest Expense (A) Rs.52,92,000/- 2. Average Investment as on 31/03/2016 in Mutual Fund/shares from where exempted Income generated(B) Rs.73,32,28,583/- 3. Average assets as on 31/03/2016 in current assets (C) Rs.2,21,62,30,330/- I....
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....issue of disallowance u/s. 14A in the case of assessee has also came before Hon'ble ITAT and as per Para 27 of the order of ITAT dated 30/01/2019 for A.Y. 2010-11 in ITA No. 2334/A/2015, it has been held as under and towards administrative expenses only amount of Rs.7 lakh was sustained. "We have heard the rival contention and perused the material on record carefully. It is noticed that assessee is having sufficient interest free fund as against the Investment made on which exempt income was earned. We have gone through working of disallowance made u/s. 14A r.w. Rule 8D of the IT. Rule and it is noticed that major part of the disallowance was made by the assessing officer to the amount of Rs.20,57,946/- being 0.5% of the averag....
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....nstant assessment year and decided the case in favour of the department. The relevant extracts from the decision cited supra are reproduced below ("4.3 & 4.4")-:" 10. It is clear from the above that the ld.CIT(A)'s order passed confirming the disallowance under section 14A of the Act has resulted in grave injustice to the assessee. There cannot be a better instance of rendering injustice to an assessee by an appellate authority. 11. Be that so, besides, the issue being covered in favour of the assessee by the decision of the ITAT in Asst.Year 2010-11, during the course of hearing before us, it was pointed out that that the ITAT had followed its decision in Asst.Year 2010-11 for the subsequent assessment years also, i.e. Asst.Year 2013....