TMI Blog2015 (1) TMI 1107X X X X Extracts X X X X X X X X Extracts X X X X ..... additional evidence filed by the assessee. No doubt that after taking the Remand Report from the AO, Ld. CIT(A) has decided the issue in dispute against the assessee. Thus the issue involved require thorough examination at the level of the AO, after providing adequate opportunity of hearing to the assessee - Decided in favour of assessee for statistical purposes. - ITA No. 4595/Del/2013 - - - Dated:- 20-1-2015 - Sh. H. S. Sidhu, JM And Sh. T. S. Kapoor, AM,JJ. For the Petitioner : Sh. Y.K. Sharma, CA For the Respondent : Sh. Vikram Sahay, Sr. DR ORDER Per H. S. Sidhu, JM This is an appeal by the assessee is directed against the order dated 21.5.2013 of Ld. CIT(A)-XVIII, New Delhi on the following grounds:- (1) That on the facts and in the circumstances of the case and under the provisions of the law, the Commissioner has erred in upholding:- a) Invoking of the provisions of section 14A of I.T. Act read with Rule 8d of the Income Tax Rules, and b) Disallowance of ₹ 9,37,904/- under the above Rule. (2) That on the facts and in the circumstances of the case the Ld. CIT(A) has erred in upholding an addition of ₹ 6,62,012/- to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a for making the disallowance u/s 14A of the Act and even if no income has been earned the disallowance has to be made u/s 14A of the Act r.w. Rule 8D of the IT Rules. 6. We have heard both the counsel and perused the records, especially the orders of the Revenue authorities and Paper Book filed by the assessee containing pages 1 to 206 having the details of the assessment as well as appellate records/ documents. Assessee has submitted that the addition mentioned in Ground no. 1 as aforesaid is squarely covered by the decision of the Hon ble High Court of Delhi vide its order dated 5.9.2014 passed in ITA Nos. 486/2014 299/2014 in the case of CIT vs. Holcim India P. Ltd. in favor of the assessee and against the Revenue. He further submitted that as far as additions raised vide Ground No. 2 and 3 as aforesaid is concerned, the same was not properly considered by the AO and the assessee was not granted adequate opportunity to substantiate its claim. 7. We find that that ground no. 1 (a) (b) is related to invocation of the provisions of Section 14A read with Rules 8D of the I.T. Rules and disallowance of ₹ 9,37,902/- under section 14A. We find that in response to the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ] 223 Taxmann 130 (Guj.). The third decision is of the Allahabad High Court in Income Tax Appeal No. 88 of 2014, Commissioner of Income Tax (II) Kanpur, Vs. M/s. Shivam Motors (P) Ltd. decided on 05.05.2014. In the said decision it has been held: As regards the second question, Section 14A of the Act provides that for the purposes of computing the total income under the Chapter, no deduction shall be allowed in respect of expenditure incurred by the assessee in relation to income which does not form part of the total income under the Act. Hence, what Section 14A provides is that if there is any income which does not form part of the income under the Act, the expenditure which is incurred for earning the income is not an allowable deduction. For the year in question, the finding of fact is that the assessee had not earned any tax free income. Hence, in the absence of any tax free income, the corresponding expenditure could not be worked out for disallowance. The view of the CIT(A), which has been affirmed by the Tribunal, hence does not give rise to any substantial question of law. Hence, the deletion of the disallowance of ₹ 2,03,752/- made by the Assessing Officer was in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Holiday 31.8.2008 ₹ 14920/- x. -do- 31.8.2008 ₹ 261464/- xi. -do- 31.8.2008 ₹ 46690/- xii. -do- 31.3.2008 ₹ 4689/- xiii Shor Shot India 31.7.2007 ₹ 12516/- Why not above amounts added back in your income. (c) As per confirmation of the following parties, the difference comes after complisation:- (i) GTN ₹ 1040/- (ii) Shiv Ganga ₹ 5999/- (iii) M/s Thread Depot ₹ 78979/- Why not above amount added in your income. Produce books of a/c with vouchers/bills, and sale purchase bills etc. 10. The reply by the Assessee dated 21.12.2010 is at Page No. 5 vide para no. 5 of the AO order is reproduced below, for the sake of convenience:- 5. The assessee filed the reply vide letter dated 21.12.201 which is reproduced as under:- 5.1 As this connection it is respectfully submitted that the investment of ₹ 2, 11,04,488/- has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in our books is also enclosed. During the year we had debited the party an amount of ₹ 852884/- being amounts in respect of bills and freight cartage and petrol. The party has responded the entries aggregating to ₹ 846884/-, the debit notes of ₹ 1000/-, ₹ 1000/- and ₹ 4000/- dated 14.9.2007, 1.12.2007 and 16.1.2008 respectively. This is in continuation to our earlier reply dated 9th December, 2010 on this point. As desired acknowledgement forms of the company having filed Income Tax Returns showing loss for the AY 2000-01, 2001-02, 2002-03 and 2003-04 are enclosed. For AY 2003-04 the date for filing of the IT return had been extended to 30.11.2003 vide notification dated 16.10.2003. Copy enclosed. All the returns have been filed within the prescribed due date and therefore loss is allowed to be carried forward. 11. After going through the reply filed by the assessee, the AO completed assessment on 21.12.2010 u/s. 143(3) of the I.T. Act. We are of the of the view that the AO completed the assessment on 21.12.2010 whereas he has issued the show cause notice vide order dated 16.12.2010 asking the assesee to file its reply by 21.12.2010. We are of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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