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ACIT, Circle- (1) , Panaji – Goa Versus M/s. Alcon Resort Holdings Ltd.

2016 (6) TMI 102 - ITAT PANAJI

Disallowance u/s 14A on interest expenditure - Held that:- We find that the Commissioner of Income Tax (Appeals) has given a finding to the effect that during the year, no new investments in mutual funds and shares, were made by the assessee as the investments as on 31/03/2011 which stood at ₹ 6.78 crores was reduced to ₹ 6.75 crores as on 31/03/2012. He further gave a finding to the effect that the assessee had shown profits after tax in the financial years 2008-09, 2009-10 & 2010-1 .....

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of the Revenue against the deletion of disallowance of interest expenditure under sec. 14A is dismissed.

Disallowance under the head ‘administrative expenses’ under sec. 14A - Held that:- Departmental Representative could not bring any material on record to show that the 0.5% of the administrative expenditure worked out under sub-part (iii) of sub-clause (2) of Rule 8D on the basis of average value of the investment income from which does not form part of the total income as appearing .....

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e is dismissed.

Computation of book profit under sec. 115JB - Held that:- In view of the specific provision in sec. 115JB of the Act which states the book profits shown in the profit & loss account is to be increased by the amount of expenditure relatable to any income to which secs. 10, 11 or 12 apply, the order of the Commissioner of Income Tax (Appeals) has to be reversed and the ground of appeal of the Revenue has to be allowed. Accordingly, we set aside the order of the Commissi .....

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he Revenue is barred by limitation by 06 days. The Assessing Officer has filed a condonation petition requesting for condonation of delay and we are satisfied that the delay in filing of the appeal by 06 days, was due to reasonable cause, hence, we condone the delay and admit the appeal of the Revenue. 3. The ground No.1 of the appeal of the Revenue is general in nature, hence, requires no adjudication by us. 4. In ground No.2 of the appeal, the grievance of the Revenue is that Commissioner of I .....

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ative expenses and made a total disallowance, aggregating to ₹ 50,44,213/- being expenditure incurred for earning the exempted income. 6. On appeal, Commissioner of Income Tax (Appeals) observed that the investments of the assessee as on 31/03/2011 were ₹ 6.78 crores, which was reduced to ₹ 6.75 crores on 31/03/2012, and thus, there were no new investments made during the year under consideration. He also observed that the assessee had shown profits after tax during the financi .....

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e of administrative expenses, the assessee disallowed a sum of ₹ 700/- which is not sufficient. He observed that during the appellate proceedings, the Authorized Representative of the assessee offered ₹ 2 Lac as additional disallowance towards relatable administrative expenses under sec. 14A and therefore, he restricted the disallowance to ₹ 2 Lac under the head administrative expenses and partly allowed the appeal of the assessee. 8. Before us, the Departmental Representative .....

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l available on record, we find that the Commissioner of Income Tax (Appeals) has given a finding to the effect that during the year, no new investments in mutual funds and shares, were made by the assessee as the investments as on 31/03/2011 which stood at ₹ 6.78 crores was reduced to ₹ 6.75 crores as on 31/03/2012. He further gave a finding to the effect that the assessee had shown profits after tax in the financial years 2008-09, 2009-10 & 2010-11 at ₹ 4.74 crores, ₹ .....

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ion of disallowance of interest expenditure under sec. 14A is dismissed. 11. With regard to sustenance of disallowance under the head administrative expenses under sec. 14A of ₹ 2 Lac in place of ₹ 3,37,370/- made by the Assessing Officer, we find that Departmental Representative could not bring any material on record to show that the 0.5% of the administrative expenditure worked out under sub-part (iii) of sub-clause (2) of Rule 8D on the basis of average value of the investment inc .....

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