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2021 (8) TMI 952 - AT - Income TaxAddition under suspense account - assessee contended before the Ld. CIT(A) that first of all he did not get proper opportunity before the AO to explain about the suspense account - HELD THAT:- HELD THAT:- We are of the opinion that in the peculiar facts of the case and taking into consideration the consistent practice adopted by the assessee and accepted by the department in earlier and subsequent years, the assessee's claim that it has offered for taxation in the subsequent assessment years the very same receipts it has shown in the suspense account to the tune of ₹ 16,50,203/- out of ₹ 19,04,784/- then the addition to that extent (₹ 16,50,203/-) would amount to double taxation of the same income, therefore, we set aside the impugned order and remand this issue back to the AO and direct that if the assessee has already offered for taxation in the subsequent assessment years out of this amount added by the AO in this relevant assessment year to the tune of ₹ 19,04,784/-, then addition of ₹ 16,50,203/- need to be deleted. Coming to the balance amountthe details of which are given in page 29 of the paper book, we note that these are receipts from FYs 2005-06 to 2010-11. This amount if the assessee has offered to tax in the subsequent assessment years then it should not be taxed and this also the AO need to consider afresh after verification and pass order in accordance to law. Disallowance u/s 14A r.w.r. 8D - HELD THAT:- We note that the assessee has prepared separate income and expenditure account (personal) where dividend income which assessee claimed as exempt. According to Ld. AR, even though the portfolio management expenses of ₹ 39,18,761/- has been debited as expenses relating to portfolio management expenses, this expenses has not been claimed as deduction in the computation of total income which fact has not been verified by the AO or the Ld. CIT(A). According to Ld. AR, the assessee has incurred expenses of only ₹ 39,18,761/- for earning exempt income and the assessee has not claimed any deduction of the same in its revised computation of total income which is placed from pages 2 to 7 of the paper book. Therefore this issue need to be examined by AO afresh, for that we set aside the impugned order of Ld. CIT(A) and remand this issue back to AO with a direction to verify this fact and the AO to examine the claim of the assessee.AO has to examine the account of the assessee and if he is not satisfied with the correctness of the claim of the assessee, then he has to record the same and thereafter, only he can invoke rule 8D of the Rules. Appeal of the assessee is partly allowed for statistical purposes.
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