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2015 (3) TMI 1122

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..... n. Hon’ble jurisdictional High Court in the case of Gopal Purohit (2010 (1) TMI 7 - BOMBAY HIGH COURT ) has held that that there should be uniformity in treatment and when facts and circumstances for different years were identical particularly in the case of the same assessee. Analysis of the above lay down that the principle of consistency can be ignored only in certain conditions and without pinpointing the difference of facts for a particular year with the facts of earlier year/s consistency should be maintained. Considering the peculiar facts and circumstances of the case, we are reversing the order of the FAA. Effective ground of appeal raised by the assessee for the year under consideration, is allowed in its favour. - Decided in f .....

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..... he appeal hearing. ITA/850/Mum/2012-AY. 2008-09: Grounds of appeal for the AY. 2007-08 read as under: 1. On the facts and circumstances of the case, the learned Commissioner of Income-tax (Appeals) - IV, Mumbai [ CIT (A) ] has legally erred in confirming the action of the Assessing Officer of making disallowance of ₹ 5,99,500 under Section 14A of the Income tax Act, 1961 (the Act') . 2. The Appellant Company craves leave to add, alter, amend and / or withdraw all or any of the Grounds of Appeal as may be considered necessary either at or before the appeal hearing. ITA/240/Mum/2012-AY. 2006-07: Assessee-company, engaged in the business of Hotel Business Catering Services, filed its return of income on 29 .....

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..... aximise its gain at the right opportunity, that it was not correct to say that no administrative efforts were required in maintaining the investment, that realization of dividend also involved certain efforts in whatever form, that amount of expenditure relating to dividend income could be more or less but it had to be allocated out of the total administrative expenses. He further held that Hon'ble Bombay High Court in the case of Godrej Boyce Mfg. Co. Ltd. (328 ITR 81) had upheld Rule 8D and had observed that it was applicable from AY. 08-09, whereas for earlier years it has been held that a reasonable disallowance is to be made. Finally, he held that the disallowance calculated by the AO was the most reasonable and had to be confirm .....

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..... Ropes Ltd. (46 Taxmann.com 2014) He referred to page nos. 16 and 17 of the Paper Book. Alternatively and without prejudice it was stated that disallowance should be restricted to 1%. Departmental Representative (DR) contested that satisfaction was recorded by the AO, that he had asked a question to the assessee about invoking of provisions of section 14A of the Act, that after considering the submissions made by the assessee he had taken a decision, that assessee had not proved that how the investments made by it were strategic investments, that principals of resjudicate did not apply to the Income-tax proceedings. 5. We have heard the rival submission and perused the material before us. We find that while deciding the appeal for the AY. .....

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..... phrase and does not indicate the incurring of expenditure. The word may leave the door open. In the case of J. M. Finance (supra) ,to which one of us was the party, it has been held that if no expenditure was incurred for earning tax free income no disallowance should be made. It is said that fact of each case are different so, without highlighting the facts of that case no addition should be made on the basis of general presumption. The FAA, in the present case, had held that the every assessee would keep watch over the market to maximise its profit but he had missed one important aspect that the assessee was holding the shares of group concerns for strategic purposes and for selling and buying and selling them frequently. In absence of .....

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..... f earlier year-the only difference is of disallowance made. The AO had made disallowance of ₹ 6.19 Lakhs for the year under appeal as against the disallowance of ₹ 6.55 lakhs made for the earlier year. Following our order for the earlier year, we decide the effective ground of appeal in favour of the assessee. 7. The effective ground for the year under appeal is identical to the grounds raised in the two earlier assessment years i. e. disallowance u/s. 14A of the Act. During the year the assessee had received dividend income of ₹ 1.07 Crores and it was claimed exempt u/s. 10 (34) of the Act. The assessee itself offered disallowance of ₹ 1.18 Lakhs u/s. 14A of the Act. The disallowance consisted of entire interest .....

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