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Asst. Commissioner of Income-tax Versus Shri Bimal Roy Soni

2016 (6) TMI 881 - ITAT JAIPUR

Disallowance u/s 14A - CIT (A) has deleted the disallowance on the ground that it has been held by the coordinate Bench in assessee’s own case pertaining to A.Y. 2002-03 that provisions of section 14A are not applicable - Held that:- Since the facts are identical in the year under appeal also, the contention of the assessee throughout has been that the investment wherefrom it has earned exempt income were made for the purpose of maintaining the controlling interest. Therefore, in view of the dec .....

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st income received from the BCCI - Held that:- We find that ld. CIT (A) has deleted the disallowance merely on the basis of presumption that the assessee might have incurred certain expenditure. In our considered view, this approach of ld. CIT (A) is not justified. Since the assessee himself has claimed certain income earned from other sources and claimed set off of expenditure incurred for earning such income, it was incumbent upon the assessee to furnish supporting evidence qua its claim for e .....

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d. CIT (Appeals)-I, Jaipur dated 04.11.2011 and 16.05.2012 respectively. In both the appeals common grounds have been raised, therefore, both the appeals are taken up together for hearing and are being disposed off by way of a consolidated order for the sake of convenience. 2. First we take up revenue s appeal for assessment year 2008-09 bearing ITA No. 105/JP/2012 wherein the revenue has raised the following grounds of appeal :- Whether on the facts and in the circumstances of the case and in l .....

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led before the AO. 3. Briefly stated the facts are that in pursuance to the direction of the ld. CIT, the AO framed assessment under section 143(3) of the IT Act, 1961 (hereinafter referred to as the Act) vide order dated 13.12.2010. While framing the assessment, the AO made disallowance of ₹ 44,89,436/- under section 14A of the Act by applying the provisions of Rule 8D of the IT Rules, 1962 (hereinafter referred to as the Rule) and also made disallowance of ₹ 1,35,341/- on account o .....

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deleting the disallowance of ₹ 44,89,436/- as made by the AO by invoking the provisions of section 14A of the Act. 4.1. The ld. Senior D/R vehemently argued that ld. CIT (A) was not justified in deleting the disallowance. The ld. D/R submitted that the decision of Tribunal as relied by the ld. CIT (A) pertains to the earlier period when Rule 8D was not inserted into the Statute book. The ld. D/R submitted that there is no dispute with regard to the fact that the assessment under appeal is .....

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Rule 8D but the disallowance under Rule 8D cannot exceed the exempt income earned during the year under appeal. The ld. Counsel further submitted that even otherwise also the AO has to give a finding in respect of the expenditure claimed by the assessee, but no such finding is given by the AO. He has straight away applied the provisions of Rule 8D. He submitted that satisfaction under section 14A(2) is sine qua non for invoking the provisions of Rule 8D. In the absence of such satisfaction, appl .....

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ers vs. CIT, 288 ITR 1 (SC). Apart from the judgment of the Hon ble Supreme Court, the ld. Counsel has placed reliance on the various decisions of coordinate Bench as under :- J.M. Financial Ltd. vs. Addl. CIT (ITA No. 4521/M/2012) Garware Wall Ropes Ltd. vs. ACIT (ITA No. 5408/Mum/2012 ) EIH Associated Hotels Ltd. vs.DCIT (ITA No. 1503/Mds/2012) ITO vs. Pioneer Radio Training Services Pvt. Ltd. (ITA No. 4448/Del/2013) 4.3. We have heard rival contentions, perused the material on record and gone .....

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in view of the decision of the Tribunal, provisions of section 14A would not be applicable. The coordinate Bench in assessee s own case in the assessment year 2002-03 had deleted the addition on the basis that provisions of section 14A would not be applicable in the case of the assessee as the investment has been made solely for the purpose of having the controlling interest. There is no change into the facts in this year as well. The revenue has not brought to our notice any contrary binding pr .....

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e was furnished in support of the claim of expenditure. It is incumbent upon the assessee to give supporting evidence in respect of the claim of expenditure. In the absence of supporting evidence, expenditure cannot be allowed. The ld. D/R submitted that the ld.CIT (A) was grossly erred in deleting the disallowance. 5.2. On the contrary, ld. Counsel for the assessee reiterated the submissions as are made in the written submissions and supported the order of ld. CIT (A). 5.3. We have heard rival .....

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traveling during the tour with respect to his managerial functions. Apart from the telephone expenses, the expenditure on tour is claimed at ₹ 1 lac which is less than 10% of the total payments made by the BCCI to the assessee for this purpose. It appears to be a reasonable amount of expenditure that is likely to have been incurred by the appellant to discharge his duties. Therefore, the impugned disallowance of ₹ 1,35,341/- is directed to be deleted. However, the AO in the assessmen .....

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