TaxTMI 
TaxTMI 
2025 (4) TMI 2051
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....e relevant assessment year is 2013-2014. 2. There was a delay of 21 days in filing this appeal before the Tribunal. The assessee has filed a petition for condoning the delay and also the affidavit of the Managing Director of the assessee stating the reasons for the delay in filing this appeal. 2.1 We have perused the affidavit filed by the Managing Director of the assessee. We find that the delay in filing this appeal cannot attributed to any latches on the part of the assessee. In other words, there is no willful or contumacious conduct on the part of the assessee and the delay in filing this appeal was caused due to the reasons beyond the control of the assessee, hence, we condone the delay of 21 days and proceed to dispose of the s....
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....mental increase in reserves and surplus. 6. Aggrieved by the order of the CIT(A), the assessee has filed the present appeal before the Tribunal. The learned AR's limited submission before the ITAT is that the CIT(A) grossly erred in sustaining the disallowance u/s.14A r.w.Rule 8D to a sum of Rs. 27,54,890. It was submitted by the learned AR that the assessee-company during the year had earned exempt income of only Rs. 1,06,480 (dividend income exempt u/s.10(34) of the Act). It was submitted that it is well settled position of law that disallowance u/s.14A r.w.r 8D should be limited or should not exceed the exempt income. In this context, the learned AR relied on the order of the Cochin Bench of the Tribunal in the case of ITO v. Kerala A....
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.... it did not incur any expenditure for earning exempt income. The assessee further contended that the investments are made in group companies which are invested in earlier years. Though it has incurred certain common expenses in the nature of general administrative expenses, no specific expenditure has been incurred to earn exempt income. We do not find any merit in the arguments of the assessee for the reason that when there is no substantial investments in shares which yield exempt income, the possibility of incurring certain common expenditure attributable to investment cannot be ruled out. Though the assessee claims to have not incurred any specific expenditure, it is abundantly clear that the assessee has incurred various administrative....
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....is there appears to have been no scrutiny of the accounts by the AO-an aspect which is completely unnoticed by the CIT(A) and the Tribunal. The third, and in the opinion of the Court, important anomaly which we cannot be unmindful is that whereas the entire tax exempt income is Rs. 48,90,000, the disallowance ultimately directed works out to nearly 110 per cent of that sum, i.e. Rs. 52,56,197. By no stretch of imagination can s.14A or r.8D be interpreted so as to mean that the entire tax exempt income is to be disallowed. The window for disallowance is indicated in s.14A, and is only to the extent of disallowing expenditure "incurred by the assessee in relation to the tax exempt income". This proportion or portion of the tax exempt income s....