TMI Blog2012 (6) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... if so required remand report may be obtained from the Assessing Officer before passing a fresh order - Appeals are allowed for statistical purpose - ITA. No. 163/Del/2011, ITA. No. 164/Del/2011, and ITA. No. 165/Del/2011, ITA. No. 237/Del/2011, ITA. No. 238/Del/2011; ITA. No. 239/Del/2011, - - - Dated:- 11-10-2011 - U.B.S. Bedi, B.K. Haldar, JJ. K.V.S. R. Krishna, C.A. for the Appellant A.K. Monga, Sr. DR. for the Respondent ORDER 1. These are three appeals filed by the assessee and corresponding cross appeals filed by the revenue respectively against the combined order of Ld CIT(A)-XXI, New Delhi dated 12.11.2010 for assessment years 2001-02, 2006-07 and 2007-08. For the sake of convenience, all these appeals are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lling got remand report from the Assessing Officer on the issue set aside for verification, the Ld CIT(A) has not decided the appeal in accordance with the Board's circular No.14 dated 12.12.2001 on the issue. 3. The conditions laid down for admitting additional evidence under Rule 46A are not satisfied in this case. Assessment year: 2006-07 4. Grounds of appeals taken by the assessee are as under:- 1. The CIT(A) has erred in law and on facts and circumstances of the case in upholding the applicability of provisions of section 14A and consequential disallowance u/s 14A. The appellant contends that there is no nexus established by the Assessing Officer or the CIT(A) for making any disall0owance u/s 14A towards expenditure for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nds that there is no nexus established by the Assessing Officer or the CIT(A) for making any disall0owance u/s 14A towards expenditure for earning tax free income. Hence no disallowance should be made. 2. Without prejudice to the above, the Ld CIT(A) has erred in directing the Assessing Officer to verify and if satisfied to restrict the disallowance u/s 14A to Rs.56,525.24 Such setting aside powers are not available to the CIT(A). CIT(A) should have himself adjudicated and decided the appeal restricting the disallowance u/s 14A to Rs.56,525.247 as complete details and working was available with the CIT(A). 3. The above grounds are independent and without prejudice to one and another. 4. The appellant prays that he may be allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4A will apply during the assessment year under consideration. 3. Administrative expenditure of Rs.57,35,803/- and expenditure on personal at Rs.32,72,353/- are common expenses pertaining to each and every activity of assessee's business and therefore it cannot be said that no part of it was incurred in relation to exempt dividend income. 8. The Hon'ble Tribunal, therefore, directed the Assessing Officer to provide the assessee further opportunity and decide the matter afresh. 9. In pursuance of the above directions of the Tribunal, the assessee was allowed opportunity by the Assessing Officer. The main submission of the assessee has been reproduced by the Assessing Officer in pages 2-3 of the assessment order. The Assessing Offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bove, it was contended that only 25% of expenses incurred on personnel can be said to be relatable to earning the exempt income. On that basis, the disallowance u/s 14A of the Act was worked out by the assessee at Rs..26,987.41. 13. The Ld CIT(A) after considering the facts and circumstances of the case and the decision of the Hon'ble Bombay high Court in the case of Godrej and Boyce Mfg. Co. Ltd. (supra) opined that disallowance u/s 14A of the Act has to be made in the facts and circumstances of the case. The dispute, therefore, was with reference to the quantification of the disallowance. The Assessing Officer worked out the proportionate expenditure out of expenses debited to PandL A/c which was directly and indirectly relatable to e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et aside any matter was curtailed by making amendment to section 251(1)(a) w..e.f. 1.6.2001. In the above view of the matter, we deem it fit to set aside the order of the Ld CIT(A) on this issue and remit the matter back to his file for passing a fresh speaking order as per law. The Ld CIT(A) should take into consideration the earlier decision of the Tribunal as well as the submissions made by the assessee., If so required he should also obtain the remand report from the Assessing Officer. Thus, both the appeals of the assessee as well as the revenue are allowed for statistical purposes. Assessment year: 2006-07: 17. The first issue disputed by the assessee as well as by the revenue relates to disallowance u/s 14A of the Act. The fa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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