TMI Blog2016 (1) TMI 611X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 37,02,71,649/- as total assets and not as ₹ 32,06,90,060/- of net assets. - Decided against revenue - ITA No. 158/Kol /2013 - - - Dated:- 13-11-2015 - Mahavir Singh, JM And Waseem Ahmed, AM For the Appellant : Shr P K Chakraborty, JCIT-SR-DR For the Respondent : Shri Girish Sharma, FCA ORDER Per Waseem Ahmed, Accountant Member This appeal by the Revenue is arising out of order of Commissioner of Income Tax (Appeals)-VI, Kolkata in appeal No.163/CIT(A)-VI/Wd-6(2)/09- 10/Kol Dated 15.10.2012. Assessment was framed by ITO Ward-6(2), Kolkata u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') vide his order dated 22.11.2011 for assessment year 2009-10. 2. Issue is to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld be ₹ 2061185.00. Aggrieved, assessee preferred appeal before Ld. CIT(A) who held that the action of the AO was right for the working of the disallowance under the provisions of section 14A of the Act as the assessee has not provided the manner of working for the disallowance of interest. However, the Ld. CIT(A) has disregarded the working of disallowance of the interest as made by the AO and restored the file to the AO with the direction to re-compute the disallowance as per law. The relevant portion of Ld. CIT(A) order in relation to the working of interest under the provisions of section 14A of the Act is reproduced below : i) The disallowance under Rule 8D will be calculated on the figure of investments only without taki ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ads as under : b. Secondly the calculation as Rule 8D(2)(ii) specifies the following computation formula:- A x B C Where A= amount of expenditure by way of interest other than the amount of interest included in clause (i) incurred during the previous year; B= the average of value of investment, income from which does not or shall not form part of the total income, as appearing in the balance sheet of the assessee, on the first day and the last day of the previous year; C= the average of total assets as appearing in the balance sheet of the assessee, on the first day and the last day of the previous year; From the above we see that 'B' stands for average value of investment and investment does not include the sto ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
