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TMI Blog2017 (8) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment year 2006-07, claiming the following substantial questions of law : "(a) Whether on the facts and in the circumstances of the case, the Tribunal was legally correct in holding that the disallowance of Rs. 1,35,270 made under section 14A of the Act on estimation basis for earning the dividend income which was exempt under section 10(34) (wrongly mentioned as (33)) of the Act in spite of the fact that no expenses were incurred by the appellant for earning the said dividend income ? (b) Whether on the facts and circumstances of the case, the Tribunal was legally correct in holding that the estimation made by the Assessing Officer of the expenditure such as printing and stationery, postage and telegraph expenses and auditor's r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 14A of the Act should not be made. The assessee replied that no expenses were incurred to earn the said dividend income and therefore no expenses could be disallowed under section 14A of the Act. The Assessing Officer rejected the plea of the assessee and estimated the amount out of administrative expenses on proportionate basis and disallowed Rs. 1,35,270 on the basis of decision of the Tribunal in the case of M/s. Nahar Industrial Enterprises Limited for the assessment year 1997-98. In first appeal before the Commissioner of Income-tax (Appeals) (CIT(A)), the order passed by the Assessing Officer was sustained. The Tribunal in its order dated September 23, 2009 in the second appeal filed by the assessee also sustained the disallo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and (b) relating to disallowance of Rs. 1,35,270 made under section 14A of the Act for earning the dividend income which was exempt under section 10(34) of the Act, the Assessing Officer had recorded that the assessee had incurred certain expenses for earning the said dividend income which were inadmissible in view of section 14A of the Act. The Assessing Officer after considering the totality of facts and circumstances had disallowed Rs. 1,35,270 under section 14A of the Act following the decision of the Tribunal in the case of Nahar Industrial Enterprises Limited for the assessment year 1997-98 on similar grounds. On appeal by the assessee, the disallowance of Rs. 1,35,270 made by the Assessing Officer under section 14A of the Act was up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s seen that in the case of Nahar Industrial Enterprises for the assessment year 1997-98, which has been relied upon by the Additional Commissioner of Income-tax, the hon'ble jurisdictional Bench of the Income-tax Appellate Tribunal, Chandigarh has considered the administrative expenses under these two heads also for necessary disallowance under the provisions of section 14A of the Act. The hon'ble Income-tax Appellate Tribunal has therefore not held that these expenses had no nexus vis-a-vis earning of dividend income. Therefore, the Additional Commissioner of Income-tax was fully justified in considering even the expenses under these two heads of computing proportionate disallowance under section 14A of the Act. In view of the abov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Textile Industries Limited) decided on August 25, 2009 [2009] 319 ITR 204 (P&H) and I. T. A. No. 331 of 2009 (CIT v. Hero Cycles Ltd. [2010] 323 ITR 518 (P&H)) decided on November 4, 2009 relied upon by the learned counsel for the assessee being based on individual fact situation involved therein, no advantage can be derived therefrom. Accordingly, no substantial question of law arises. 5. Examining question (c), the same is covered by the judgment of this court against the assessee in I. T. A. No. 69 of 2008 (Nahar Spinning Mills Limited v. CIT) decided on July 28, 2014. 6. Adverting to question (d), the assessee had made donation by way of clothes towards Prime Minister's Relief Fund for Jammu and Kashmir Earthquake Relief. The de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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