TMI Blog2018 (8) TMI 646X X X X Extracts X X X X X X X X Extracts X X X X ..... appeals filed by the assessee are directed against the order of the Commissioner of Income Tax (Appeals)-4, Mumbai [in short CIT(A) ] and arise out of the assessment completed u/s 143(3) of the Income Tax Act 1961 (the Act ). As common issues are involved, we are proceeding to dispose them off through a consolidated order for the sake of convenience. ITA No. 2608/MUM/2014 Assessment Year: 2006-07 2. The 1st ground raised in this appeal is against the order of the Ld. CIT(A) confirming the disallowance of ₹ 32,49,904/- made by the Assessing Officer (AO) u/s 14A. Briefly stated, the facts of the case are that the assessee filed its return of income for the assessment year (AY) 2006-07 on 28.11.2006 declaring los ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ook (P/B) containing (i) copy of order of the Tribunal dated 08.06.2015 for AY 2005-06, (ii) copy of order of the Tribunal dated 19.01.2011 for AY 2006-07, (iii) copy of order of CIT(A) dated 04.01.2010 for AY 2006-07, (iv) copy of assessment order dated 31.12.2008 for AY 2006-07, (v) copy of written submissions to CIT(A) dated 26.08.2013, (vi) copy of written submissions to Assessing Officer dated 15.10.2012 and (vii) copy of computation of total income and annual accounts. 5. On the other hand, the Ld. DR relies on the order passed by the ITAT A Bench Mumbai in the case of the assessee for the AY 2009-10 in ITA No. 1747/Mum/2013 and submits that the same may be followed. Thus the Ld. DR supports the order passed by the Ld. CIT(A). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal, the assessee has objected to the order of the Ld. CIT(A) confirming the levy of interest u/s 234C. In the 3rd ground of appeal, the assessee has contended that the Ld. CIT(A) erred in confirming the levy of interest u/s 220(2) of the Act. The Ld. counsel of the assessee submits that on account of credit in respect of Tax Deducted at Source (TDS), the assessee was not liable to pay advance tax, as such there was no question whatsoever of interest u/s 234C of the Act, being payable. However, the AO has levied interest of ₹ 17,933/- u/s 234C of the Act. The Ld. counsel further submits that the original order dated 31.12.2008 has been set aside by the ITAT vide order dated 19.01.2011 and the case has been remanded to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me of ₹ 13,81,54,544/-. In response to a query raised by the AO to explain why disallowance u/s 14A r.w. Rule 8D should not be made, the assessee submitted that no expenses were incurred for earning such exempt income. However, the AO was not convinced with the above explanation of the assessee and made a disallowance of ₹ 46,43,452/- u/s 14A r.w. Rule 8D. As the assessee had already disallowed ₹ 16,20,581/-, the AO restricted the disallowance to ₹ 30,22,861/- (Rs.46,43,452/- minus Rs.16,20,591/-). 11. Aggrieved by the order of the AO, the assessee filed an appeal before the Ld. CIT(A). We find that the Ld. CIT(A) has agreed with the reasons given by the AO and confirmed the disallowance made by him. 12. Befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndia Ltd . (1985) 154 ITR 172 (SC), it is held: It is needles to add that in India under article 141 of the Constitution, the law declared by the Supreme Court shall be binding on all courts within the territory of India and under article 144 all authorities civil and judicial, in the territory of India shall act in aid of the Supreme Court. Further, in East India Commercial Co. Ltd. v. Collector of Customs, AIR 1962 SC 1893, it has been held that the law declared by the highest court in the state is binding on authorities or tribunals under its superintendence, and that they cannot ignore it either in initiating a proceeding or deciding on the rights involved in such a proceeding. In the instant case neither the AO nor the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o section 115JB(2) is to be made without resorting to computation as contemplated u/s 14A r.w. Rule 8D. Facts being identical, we follow the above decision of the Special Bench and allow the 2nd ground of appeal filed by the assessee. 15. The 3rd ground of appeal is against the order of the Ld. CIT(A) confirming disallowance of ₹ 1,37,699/- u/s 94(7) for the purpose of computation of book profit u/s 115JB of the Act. 16. During the course of assessment proceedings, the AO found from the details of date of purchase and sales and receipt of dividend that an amount of ₹ 1,37,699/- in respect of HSBC Cash Fund, is hit by the provisions of sections 94(7) of the Act. Accordingly, he added back an amount of ₹ 1,37,699/- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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