9911796707
TMI Blog2019 (5) TMI 1119X X X X Extracts X X X X X X X X Extracts X X X X ..... g and manufacturing of tea in the district of Jorhat, Assam. The AO noted that the assessee has debited Rs. 9,29,516/- as miscellaneous expenses, so he called upon the assessee to provide the details of such expenses. According to the AO, the assessee failed to substantiate that all expenses were incurred wholly and exclusively for the business purposes and, therefore, the AO taking note of the explanation, volume and nature of business of as well as number of entries, estimated the disallowance of 20% of claim which comes to Rs. 1,85,903/- and added to the income of the assessee company. Aggrieved the assessee preferred an appeal before the Ld. CIT(A) who was pleased to confirm the same. Aggrieved the assessee is before us. 4. I have hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation to earning of such exempt income. According to the AO, the assessee failed to apply the provision of section 14A read with Rule 8D. The AO noted that assessee has debited Rs. 54,43,796/- as interest expenses. Thereafter, the AO applied Rule 8D and after considering the amount disallowed by the assessee to the tune of Rs. 1,78,329/- disallowed further amount of Rs. 5,63,170/-. Aggrieved the assessee preferred an appeal before the Ld. CIT(A), who give partial relief to the assessee in respect of disallowance made by the AO under Rule 8D(2)(iii). Aggrieved the assessee is before us only challenging the action of the Ld. CIT(A) in confirming the action of AO in respect of disallowance made under Rule 8D(2)(ii). 7. I have heard both the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Scheme 44,88,603 Replanting in Heelakah Tea Estate c. Long Term Loan from Bank 34,04,400 For purchase of plant & machinery 8. Taking our attention to the above chart, he submitted that the assessee had own funds which is more than sufficient to take care of the investments made in equities and the interest bearing fund were utilized for the purposes for which the loans were sanctioned as clear from the table above. The learned AR drew our attention to the assessee's own case decided by the Tribunal in ITA No. 2725/kol/2013 for A.Y. 2009-10 wherein a similar issue arose and the Tribunal held as under: "9. Heard rival submissions and perused the evidence available on record. We find From the tabular form schedule as repr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for accumulated depreciation 5,06,49,702 For fixed assets, investments and other b. Provision for diminution in value of investments 93,00,000 Investments in shares and mutual funds c. Provision for doubtful advance 23,905 For working capital requirements 3. Total non-interest bearing funds 17,40,98,002 4. Secured Loans a.From United Bank of India 2,17,62,275 For working capital requirements b. From Tea Board-Special purpose Tea Fund Scheme 27,78,081 Replacing in Heelaksh Tea Estate 10. From the aforesaid chart only the Tribunal has come to a conclusion that the loan funds have not been diverted by the assessee for making investment in the shares for n ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
