TMI Blog2013 (12) TMI 1567X X X X Extracts X X X X X X X X Extracts X X X X ..... g is available, we set aside the order of learned CIT(A) on this issue and restore the matter to the Assessing Officer for fresh decision. We would like to make it clear that the burden is on the assessee to furnish the proof of delivery of vehicle on 31/03/2007 and thereafter, the Assessing Officer should pass necessary order as per law. This ground of appeal is allowed for statistical purposes. - I.T.A. Nos.95 & 96/LKW/2012 - - - Dated:- 23-12-2013 - BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER For the Appellant:- Shri Alok Mitra, D.R. For the Respondent:- Shri P. K. Kapoor, C.A. O R D E R PER A. K. GARODIA, A.M. these appeals are filed by the Revenue, which are directed against two separate orders of learned CIT (A)-I, Kanpur both dated 25/11/2011 for assessment years 2006-07 and 2007-08 respectively. Both these appeals were heard together and are being disposed of by this common order for the sake of convenience. 2. First we take up the appeal of the Revenue for assessment year 2006-07 i.e. I.T.A. No.95/Lkw/2012. The first ground is as under: 1. The Ld. CIT(A) has erred in law and on facts in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 DTR (A.T.) 0158. In that case, it was held by the Tribunal that where the assessee is carrying out activity of purchase and sale of shares as a dealer and dividend income is incidental on the shares held by it as stock-in-trade, there is no live connection between the interest expenditure incurred by it and such dividend income and therefore, no part of interest on borrowed fund used for trading activity can be disallowed u/s 14A of the Act. Regarding the disallowance out of administrative expenditure, it was held that reasonable basis of apportionment of administrative expenditures among different activities is the volume and nature of transactions under different activities and not the ratio of dividend income to taxable income. In the present case, the disallowance of ₹ 37,60,774/- includes the disallowance of ₹ 87,285/- out of interest expenditure and the balance amount of disallowance of ₹ 36,73,516/- is on account of administrative expenses. Hence, as per the ratio laid down by the Tribunal in this case, cited by learned A.R. of the assessee and followed by the learned CIT(A), the disallowance made by the Assessing Officer on account of interest expenditur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore the Assessing Officer in respect of expenditure incurred for earning dividend income, this aspect cannot be examined by the Assessing Officer and therefore, in the facts of the present case, this judgment of Hon'ble Punjab Haryana High Court is not rendering any help to the assessee. 6. In view of above discussion, we are of the considered opinion that as per the Tribunal decision rendered in the case of Yatish Trading Co.(P) Ltd. (supra), cited by learned A.R. of the assessee and followed by learned CIT(A), the disallowance made by the Assessing Officer of ₹ 87,258/- out of interest expenditure is not sustainable and therefore, the same stands deleted and we do not find any reason to interfere in the order of learned CIT(A) on this part of disallowance deleted by him. For the remaining part of the disallowance of ₹ 36,73,516/- made by the Assessing Officer out of administrative expenses, we set aside the order of learned CIT(A) and restore the matter back to the file of the Assessing Officer for fresh decision in the light of the above Tribunal decision rendered in the case of Yatish Trading Co.(P) Ltd. (supra). We would like to make it clear that the burd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as made any non compliance or the books of account, bills and vouchers were not produced for his examination. He has also noted that the sales mobilized by the sale/commission agent are mentioned in the debit notes and on this basis, he has deleted the disallowance. The learned CIT (A) has totally failed to dislodge the main objection of the Assessing Officer that the assessee has not provided any details regarding the services rendered by these 9 persons. The Assessing Officer has also noted that no confirmation has been filed from these 9 persons. In spite of these two objections of the Assessing Officer, there is no mention in the order of learned CIT (A) regarding details of services rendered by these 9 persons and regarding their confirmation. Hence, we are of the considered opinion that the order of learned CIT (A) on this issue is not sustainable in the facts of the present case. We, therefore, reverse the same and restore that of the Assessing Officer. Ground No. 2 of the Revenue s appeal is allowed. 10. As a result, the appeal of the Revenue for assessment year 2006-2007 is partly allowed in the terms indicated above. 11. Now we take up the appeal of the Revenue for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for statistical purposes. 13. Ground No. 2 is as under: 2. The Ld. CIT(A) has erred in law and on facts in deleting the addition of ₹ 1,20,327/- without appreciating the fact that the assessee paid commission to six persons from whom no confirmation or proof of rendering service has been submitted before the Assessing Officer. 14. Regarding this ground also, it was agreed by both the sides that the issue and facts are identical in this year also and the same can be decided on similar lines. In this year also, it is noted by Assessing Officer on page 2 of the assessment order that commission of ₹ 1,20,327/- was paid to six persons from whom no confirmation or proof of rendering services has been submitted. Hence, in this year also, we decide this issue on similar lines as has been decided by us in assessment year 2006-2007 as per Para no. 8 of this order. Accordingly, this ground is allowed. 15. Ground No. 3 is as under: 3. The Ld. CIT(A) has erred in law and on facts in deleting the addition of ₹ 1,10,475/- without appreciating the fact that the assessee has purchased/received the vehicle on last day of Financial Year and its registration ..... X X X X Extracts X X X X X X X X Extracts X X X X
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