9911796707
TMI Blog2021 (1) TMI 393X X X X Extracts X X X X X X X X Extracts X X X X ..... #39;) read with Rule 8D(iii) of Rs. 1,09,16,151/- 1. On the facts and in the circumstances of the case and in law, the Commissioner of Income-tax (Appeals) erred in not following the directions of the Hon'ble ITAT to restrict the disallowance under section 14A to the extent of actual claim of administrative expenses apportioned to the exempt income amounting to Rs. 24.5 lakhs. Non-granting of interest under section 244A of the Act 2. On the facts and in the circumstances of the case and in the law, the Commissioner of Income-tax (Appeals) erred in not adjudicating the ground pertaining to non-granting of interest under section 244A of the Act from the first day of assessment year to the date on which refund is granted. It is evid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xceeds the total claim of expenditure incurred for the composite activities resulting taxable or non-taxable income then the disallowance should be restricted to the said actual total claim of expenditure. 6. Consistent with the view taken by the coordinate bench, we set aside the order passed by the learned CIT(A) on this issue and restore the same to the file of the Assessing Officer for considering the issue afresh by duly considering all the types of contentions that may be raised and all the materials that may be produced by the assessee." From the perusal of aforesaid directions, it is clear that the issue has been restored back to the file of Ld. AO for fresh adjudication after considering various submissions raised by the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reinvested or directly credited to assessee's bank account. The General Manager and Head of Finance would take a final call after the Senior Accounts Officer had identified investment to be made. Hence, the same would justify the disallowance of proportionate salary and small amount of overheads. It was submitted that no other expenditure was incurred to maintain the investments and hence, the suo-moto disallowance was to be accepted. The perusal of computation of income would show that the assessee has earned exempt dividend income of Rs. 1146.37 Lacs during the year. 3.2 However, Ld.AO opined that the apportionment of expenditure could not be established by the assessee and hence, the disallowance was to be computed as per Rule 8D only. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on record. The issue before us is in narrow compass i.e. quantum of indirect / administrative expenditure disallowance u/r 8D(2)(iii). We find that the assessee has made adhoc disallowance of Rs. 16.51 Lacs out of Telephone expenses, stationery expenses and salary expenses. The salaries component is based on estimated proportionate time spent by certain employees who could be said to have devoted time towards investment activity. The disallowance is in the range of 10% to 25% of salary cost of these personnel. However, the Ld. AO was not satisfied with the aforesaid disallowance since the assessee would have incurred expenditure under other heads as well. 7. From assessee's submissions to Ld. CIT(A) on 08/10/2018, we find that the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nses related to operations Project execution expense 2388.14 Raw materials consumed 92.22 Changes in inventory 1.02 Interest 14.72 Depreciation 23.07 Employee cost 170.43 Repairs & maintenance - P&M 1.61 Repairs & maintenance -Building 0.03 Repairs & maintenance -others 2.85 Processing charges 3.14 Power & fuel 4.55 Stores & Spares consumed 1.58 Rates & taxes 1.22 Insurance 0.94 Motor vehicle expenses 12.41 Travelling expenses 14.97 Professional & Legal charges 7.43 Staff recruitment/ training expenses 0.46 Business development expenditure 1.17 Bad debts/ Provision for doubtful debts 3.54 Provision for doubtful advances reversed 1.74 Exchange loss 1.79 Brand equity contrib ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
