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TMI Blog2015 (6) TMI 413X X X X Extracts X X X X X X X X Extracts X X X X ..... ubbed together, heard together and disposed of by this common order for the sake convenience. 2. First, we take up assessee's appeal in ITA No.4779/Mum/12 (Assessment Year :2005-06) 2.1 The first ground in ITA No. 4779/Mum/12 is as follows :- "The ld. CIT(A)-XII, Mumbai has erred on facts, in law and in the circumstances of the case in partly disallowing the Interest Expenses u/s. 36(1)(iii) of the Income tax Act, 1961 to be calculated on the basis and as per the method specified in the appellate orders dated 30/3/2007 for assessment year 2003-04 and by the Order dated 28/12/2007 for the assessment year 2004-05 passed by the Ld. CIT(A)-VI instead of allowing the interest as claimed by the appellate." 2.2 After hearing both the parties, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs, the interest disallowance on the above amount has to be disallowed as there are already findings that the amounts are advanced for non business purposes. To that extent, the disallowance of interest stands confirmed. With these directions the issue in this ground is restored to the file of the Assessing Officer for fresh consideration after examining the facts and to decide according to law. Assessee should be given an opportunity to make submissions and furnishing the necessary details in this regard. With these directions the appeal is considered as partly allowed for statistical purposes." 2.3 Further, it is also brought on record by the ld. AR that similar issue was considered by this Tribunal for the assessment year 2006-07 in ITA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch to work out the disallowance on a reasonable basis in the current year, where the department had gone in appeal against the disallowance restricted to 10%. We, fully endorse the view taken by the coordinate Bench, and we also direct the AO to workout disallowance on reasonable basis." 3.2 In view of the above order of the Tribunal disallowance restricted to 10% of the dividend income earned for the current year is very reasonable and same is confirmed. This ground is rejected. 4. The third ground in ITA No.4779/Mum/2012 is as follows :- "The ld. CIT(A), has erred on facts, in law and in the circumstances of the case in treating the loss of Rs. 3,32,042/- on only sale of Equity Shares, though there was no purchase during the year and n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e interest loss." 4.2 In view of the above order of the Tribunal we are inclined to confirm the order of the CIT(A) on this issue. This ground of the assessee is rejected in both the appeals. 5. Further the ld. AR has not pressed the following grounds in these appeals on account on smallness of the amount of addition. "d. The ld. CIT(A) erred in law, on facts and in the circumstances of the case in confirming disallowance by the ld. AO, of interest u/s. 201(1A) of the Act of Rs. 3,17,026/- as compensation and not penalty for delayed payment of Tax Deducted at Source." "e. The ld. CIT(A) erred in law, on facts and in the circumstances of the case in confirming disallowance by the ld. AO, of interest paid u/s. 36(1)(iii) of the Act of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the interest as claimed by the appellate." 7.4 As discussed in ground No.1 in ITA No.4779/Mum/2012 this ground is restored to the file of AO on similar directions. 7.5 The third ground in ITA No.4778/M/12 is as follows :- "3. The ld. CIT(A) erred on in law, on facts, in the circumstances of the case in confirming disallowance made u/s. 14A of the Act, by the Ld. ACIT(A)-6(2) but restricting the amount of disallowance to 10% of the dividend income earned instead of deleting the same or ought to have restricted disallowance to 1% of the dividend income u/s. 14A of the Act." 7.6 As discussed in ITA No.4779/Mum/2012 with reference to ground No.2 therein this ground is rejected. 7.7 Further the ld. AR has not pressed the following ground ..... X X X X Extracts X X X X X X X X Extracts X X X X
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