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2018 (1) TMI 1369 - AT - Income TaxDisallowance u/s 14A r.w. Rule 8D - Held that:- Both the lower authorities follow their respective findings right from assessment year 2008-09 to 2011-12 in order to compute the impugned disallowance under the newly introduced computation provision i.e. Rule 8D of the Income Tax Rules. Case records reveal that the assessee’s appeals against the said corresponding disallowance stand accepted on 08.04.2016 and 14.09.2017. It has come on record that the said co-ordinate benches have deleted identical disallowances in earlier assessment years. We therefore follow consistency to delete the impugned disallowance for want of an appropriate satisfaction u/s.14A(2) of the Act. The assessee’s former substantive ground succeeds. Addition u/s 40(A)(2)(b) - Held that:- There is hardly any denial of the fact that the CIT(A) has followed his predecessors’ orders for assessment years 2008-09 to 2011-12. We notice in this factual backdrop that the above co-ordinate bench’s order has reversed the CIT(A)’s findings under challenge therein in partly affirming Assessing Officer’s identical action; although involving different amounts paid as remuneration to assessee’s Directors and other specified parties. Learned Departmental Representative is fair enough in not drawing any distinction on facts as well as law. We thus accept assessee’s latter substantive ground as well as its main appeal. Closing stock addition as made by the Assessing Officer u/s.145A - Held that:- There is no dispute that the CIT(A) has followed his preceding assessment year’s findings to delete the impugned addition. We find that the above latter co-ordinate bench in its order dated 14.09.2017 has upheld the same in preceding assessment year 2011-12. We therefore adopt judicial consistency qua the instant issue to uphold the CIT(A)’s findings under challenge deleting the impugned closing stock addition. - Decided against revenue
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