TMI Blog2017 (2) TMI 649X X X X Extracts X X X X X X X X Extracts X X X X ..... administrative expenses assessee itself voluntarily offered ₹ 6 Lacs towards administrative expenses before the A.O. The learned CIT(A) has restricted administrative expenses with respect to the balance of ₹ 4,54,333/-. The aforesaid has been confirmed by the learned tribunal. The relevant discussion has been made by the learned tribunal in para 21 to 27. We are in complete agreement with the reasons and the view taken by the learned tribunal. Under the circumstances, we see no reason to interfere with the impugned judgement and order passed by the learned tribunal so far as question No. [A] is concerned. - Decided against revenue. Addition on account of unutilized modvat/cenvat credit - Held that:- Tribunal has taken note t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (PER : HONOURABLE MR.JUSTICE M.R. SHAH) 1.00. Feeling aggrieved and dissatisfied with the impugned order passed by the learned Income Tax Appellate Tribunal (hereinafter referred to as the learned tribunal for short) in ITA No.1950/AHD/2011, by which the learned tribunal has dismissed the said appeal preferred by the revenue, revenue has preferred the present appeal with the following proposed questions of law :- [A] Whether the ITAT has erred in fact and in law in deleting the disallowance made by the AO on account of proportionate interest and administrative expenses of ₹ 25,41,310/-? [B] Whether ITAT has erred in fact and in law in deleting the addition made by the AO on account of unutilized modvat/cenvat credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rds administrative expenses. 2.04. The learned CIT(A) allowed the appeal preferred by the assessee partly. The learned CIT(A) set aside the disallowance of ₹ 8,84,372/- made by the A.O. on account of proportionate interest. The learned CIT(A) estimated the administrative expenses at 2% of exempt dividend income as expenditure incurred for earning exempt income and restricted the disallowance at ₹ 10,54,333/-. However, as the assessee had already suo-motu made disallowance at ₹ 6 Lacs, the learned CIT(A) held that the balance amount of ₹ 4,54,333/- be disallowed under section 14A of the Act. The learned CIT(A) also directed to delete addition of ₹ 56,08,089/-made by the A.O. on account of unutilized modvat/ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /-? [C] Whether the ITAT has erred in fact and in law in deleting the addition made by the AO on account of project loss of ₹ 7,49,000/- in relation to amount receivable from Mahanagar Gas Ltd.? 3.00. We have heard Mr. Sudhir Mehta, learned counsel appearing on behalf of the revenue and Ms.B.S. Soparkar, learned advocate appearing on behalf of the assessee. 3.01. Now, so far as the proposed question [A] is concerned, it is required to be noted that the learned A.O. disallowed the proportionate interest at ₹ 8,84,372/-. However, it is required to be noted that the assessee was already having enough fund for investment in tax free security and therefore, the learned CIT(A) directed to delete disallowance at ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- is concerned, it is required to be noted that the learned tribunal has taken note that with respect to modvat receivable account, there is corresponding less debit to the purchase account and hence to that extent there is already income offered for tax. If that be so, there was no question of further adding modvat/cenvat credit to the income of the assessee for the year under consideration. Under the circumstances, we see no reason to interfere with the impugned judgement and order passed by the learned tribunal so far as confirming the order passed by the learned CIT(A) deleting the addition made by the A.O. on account of unutilised modvat/cenvat credit of ₹ 56,08,089/-. We are in complete agreement with the view taken by the lear ..... X X X X Extracts X X X X X X X X Extracts X X X X
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