TMI Blog2020 (4) TMI 465X X X X Extracts X X X X X X X X Extracts X X X X ..... . Commissioner (Appeals) has declined to look into the aforesaid evidences filed by the assessee with a general statement that no fruitful purpose would be served by admitting the evidences. Before rejecting the additional evidences, CIT(A) should have verified their authenticity himself or could have directed the Assessing Officer to verify them. - Matter restored before the AO. Disallowance u/s 14A r/w rule 8D - assessee has earned exempt income by way of dividend - assessee has not disallowed any expenditure attributable to such income - HELD THAT:- The contention of the learned Authorised Representative that due to availability of surplus interest free funds, no disallowance of interest expenditure under rule 8D(2)(ii) is to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te, the assessee filed its return of income on 27th September 2012, declaring total income of ₹ 2,97,72,364. During the assessment proceedings, the Assessing Officer on verifying the Balance Sheet of the assessee noticed that the assessee has shown outstanding sundry creditors of ₹ 10,49,44,885. Noticing the above, the Assessing Officer called upon the assessee to furnish the details of sundry creditors. After perusing the details the Assessing Officer wanted to verify the genuineness of such sundry creditors on random basis. Accordingly, he issued notice under section 133(6) of the Act to Advait Distributors Pvt. Ltd., representing outstanding credit of ₹ 39,91,583. As observed by the Assessing Officer, the notice issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be sustained as he has only doubted the outstanding sundry creditors of ₹ 39,91,853. Accordingly, he restricted the disallowance to ₹ 39,91,853. 6. Reiterating the stand taken before learned Commissioner (Appeals), the learned Authorised Representative submitted, in course of assessment proceedings the Assessing Officer did not allow reasonable opportunity to the assessee to prove the purchases effected from Advait Distributors Pvt. Ltd. He submitted, before learned Commissioner (Appeals), though, the assessee submitted certain additional evidences, however, learned Commissioner (Appeals) refused to admit them with a general observation that no fruitful purpose would be served. The learned Authorised Representative submitted, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned from the said party, copy of ledger account of concerned party in assessee s books, copy of assessee s account in the books of Advait Distributors Pvt. Ltd. However, learned Commissioner (Appeals) has declined to look into the aforesaid evidences filed by the assessee with a general statement that no fruitful purpose would be served by admitting the evidences. The very fact that the assessee has furnished the PAN details of the supplier as well as confirmation establishes the identity of the concerned party. Further, the assessee has furnished ledger account copy of the concerned party in the assessee s books as well as assessee s account in the concerned party s books to prove the genuineness of the transaction. In our view, it c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld not be made. In reply, it was submitted by the assessee that since no expenditure was incurred for earning the exempt income, no disallowance under section 14A should be made. Not being satisfied with the explanation of the assessee, the Assessing Officer proceeded to compute the disallowance under rule 8D at ₹ 78,546, comprising of interest expenditure under rule 8D(2)(ii) for an amount of ₹ 69,514, and administrative expenses under rule 8D(2)(iii) for an amount of ₹ 9,032. The assessee challenged the aforesaid disallowance before the first appellate authority. However, learned Commissioner (Appeals) sustained the disallowance made by the Assessing Officer. 11. The learned Authorised Representative submitted, in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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