TMI Blog2012 (4) TMI 674X X X X Extracts X X X X X X X X Extracts X X X X ..... t on Non performing assets to the tune of ₹ 7424722.00 Ground 3 relates to addition on account of amount received towards repayment of principal by treating same as towards interest due to the tune of ₹ 10497000.00 Ground 4 relates to disallowance of expenses which are penal in nature at ₹ 3000.00 M/s KEC Holdings Limited Ground 5 relates to disallowance of expenses u/s 14A of the Act at ₹ 900000.00 Ground 6 relates to addition of reversal of provision for NPA at ₹ 38250000.00 Ground 7 relates to treating income from business as income from other sources Ground 8 relates to computation of book profit u/s115JB of the Act, and Ground 9 relates to levy of interest u/s 234B and 234D of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o after considering the facts of the case concluded that they are similar to facts pertaining to AY 2003 - 04 in the case of the very same assessee and therefore following the findings taken for the A.Y. 2003 - 04 went on to decide the appeal and confirmed the additions which are now subject matter of the present appeal. 8. At the outset the learned counsel appearing for the appellant submitted that he is not pressing ground Nos. 1 4, therefore ground Numbers 1 and 4 are accordingly dismissed. 9. The Ld counsel further pointed out that issues raised through ground numbers 2 3 are covered by the decision of Income- tax Appellate Tribunal Mumbai Bench 'A' in ITA No. 3734/MUM/2009 for A.Y. 2003-04 in appellant's own case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowed in the computation of income as per provisions of sec 14A. 14. When the AO confronted this to the assessee, the assessee replied that no expenditure was incurred to earn dividend income. This contention of the assessee did not find any favour from the Assessing Officer who went on to estimate the expenditure incurred to earn exempt income at ₹ 900000.00 and disallowed the same while computing the taxable income of the assessee. 15. Before CIT[A] , assessee reiterated its stand that there was no direct nexus between the administrative expenses incurred during the year and dividend income earned and there fore there cannot be any disallowance . Ld M/s KEC Holdings Limited CIT[A] relying on the decision of the special b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion for debenture reversal. However , the same has been reduced from the computation of income. The AO went on to add this amount of 15000000.00 and 15200000.00, totalling to ₹ 38250000.00 stating that the assessee has not furnished any details in respect of such a claim of deduction . 20. The ld CIT[A] while confirming the order of the assessing officer observed that the assessee has not followed the principles of accountancy in claiming deduction of provisional expenditure without debiting to the profit and loss account, further , the assessee did not submit any detail before the AO, though the AO specifically asked the assessee to substantiate its claim . 21. Before us the ld counsel appearing for the appellant stated that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted as business income . This argument of the assessee did not find any favour from the CIT[A] who confirmed the order of the AO. 28. Before us ld counsel reiterated his stand taken before the CIT[A] , but we do not find any infirmity or error in the findings of the ld CIT[A] , hence findings of the ld CIT[A] are confirmed . Appellants appeal on this ground is dismissed. 29. Ground 8 relates to computation of book profit u/s115JB of the Act . 30. AO while framing the assessment order calculated the book profit for the purposes of sec 115JB on the basis of the additions made by him in the assessment order . Since we have deleted all those additions made by the AO as per ground 2 , 3 6 here in above , we find no room for calculatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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