TMI Blog2017 (1) TMI 1217X X X X Extracts X X X X X X X X Extracts X X X X ..... he addition. - Decided in favour of assessee - IT(SS)A No.46/Kol/2014 - - - Dated:- 5-12-2016 - DR. A.L.SAINI, AM SHRI K. NARASIMHA CHARY, JM Assessee by : Shri Manish Tiwari, FCA Revenue by : Shri Niraj Kumar, CIT (DR) O R D E R Per Dr. Arjun Lal Saini, AM: The captioned appeal filed by the assessee, pertaining to the assessment year 2009-2010, is directed against the order passed by ld. Commissioner of Income Tax (Appeals)-Central-II, Kolkata, in Appeal No.104/CC-XIII/CIT(A)C-II/11-12, dated 27.01.2014, which in turn arises out of assessment order passed by the Assessing Officer (AO) Under Section 153A/143(3) of the Income Tax Act 1961, (in short the Act ), dated 06.06.2011. 2. Brief facts of the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earch operation, the AO initiated the proceedings u/s 153A of the Act and completed the assessment. In the said assessment he considered both the regular books of account and the seized documents to complete the assessment. Under the circumstances, I am of the opinion that the AO was justified in considering the additions/disallowance on the grounds other than on the basis of seized documents. Further, there is no dispute that in the year under consideration the provisions of Rule 8D were applicable to compute the disallowance u/s 14A. Though, the appellant company itself made the disallowance of ₹ 50,000/- u/s 14A but neither in the course of assessment proceedings nor in the appellate proceedings, the appellant was able to explain t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee is in further appeal before us and has taken the following grounds of appeal :- 1. That on the facts and in the circumstances of the case, Ld. CIT(A) has erred in holding that the Assessing Officer was justified in considering addition / disallowance otherwise than on the basis of seized documents and thereby confirming disallowance u/s. 14A of IT Act, 1961. 2. That on the facts and in the circumstances of the case, Ld. CIT(A) is wrong and unjustified in confirming the action of Assessing Officer who erroneously considered excess expenditure on account of interest earned as indirectly related to exempt income for the purpose of Rule 8D(ii) of IT Rules 1962 on a proportionate basis. 3. That on the facts and in the circ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessing Officer while framing the assessment invoke section 14A r.w. Rule 8D by contending that assessee claimed various expenses which are related to exempt income in its profit loss account and disallowed ₹ 14,58,412/-. On appeal, before the Id. Commissioner of Income tax (Appeals) broadly the stand taken in the assessment order was affirmed against which the assessee is in further appeal before this Tribunal. The totality of facts clearly indicates, as claimed by the assessee that no borrowed funds were utilized for earning the exempt income by the assessee and further the dividend were directly credited in the bank account of the assessee and no expenditure was claimed. What it may be, we find that the assessee only received &# ..... X X X X Extracts X X X X X X X X Extracts X X X X
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