TMI Blog2021 (1) TMI 1037X X X X Extracts X X X X X X X X Extracts X X X X ..... MBER, AND SHRI AMIT SHUKLA, JUDICIAL MEMBER Assessee by : Shri Sandip S. Nagar, CA Revenue by : Shri Rajesh Kumar, Sr. DR ORDER PER N. K. BILLAIYA, ACCOUNTANT MEMBER This appeal by the assessee is preferred against the order of the CIT(A)-2, New Delhi dated 31.08.2015 pertaining to A.Y 2012-13. 2. The only ground taken in the Memorandum of appeal relates to the additions made u/s 14A of the Income-tax Act, 1961 [hereinafter referred to as 'the Act' for short] read with Rule 8D of the Income tax Rules, 1962 amounting to ₹ 20,06,321/-. 3. Vide letter dated 21.03.2016, the assessee has also raised the following additional grounds of appeal: 1.1 We beg to refer to the above appeal which is yet t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 'ble jurisdictional ITAT in the case of Montage Enterprises Pvt Ltd.lITA No 5124/DEI/2011, dated 29-06-20181 wherein it was held that excise duty subsidy to be treated as capital in nature stands upheld from the stage of the Hon'ble Supreme Court. Once receipt itself has been treated as capital in nature it cannot be bought to tax, then same cannot be held to be includable in the book profit. 3.0 Claim of education cess as an allowable expenditure 3.1 The appellant wishes to lodge claim for deduction of education cess in computing total income in view of CBDT Circular No. 91/58/66 - ITJ(19) dated 18-05-1967, wherein it has been clarified that the effect of the omission of the word 'cess' from Sec. 40(a) (ii) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f ₹ 1,44,27,927/- and share of profit from M/s Modern Papers amounting to ₹ 9,72,94,896/- and claimed the same as exempt from tax. Invoking provisions of section 14A vide Questionnaire dated 12.09.2014, the Assessing Officer asked the assessee to give working of disallowance u/s 14A of the Act. 7. In its reply dated 14.11.2014, the assessee claimed that no expenses are liable to be disallowed contending that the investment in mutual funds and partnership firms were made out of issue of equity, including FDI raised and no borrowed funds were used for the purpose. It was explained that the investment in mutual funds were temporary in nature just to use the funds, by the time the same can be absorbed in the business of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional grounds mentioned elsewhere, the ld. DR strongly opposed to the admission of additional grounds stating that this claim was never raised before the lower authorities, therefore, the authorities below had no occasion to examine the same. 15. Per contra, the ld. counsel for the assessee vehemently stated that the additional grounds are purely legal grounds. It is the say of the ld. counsel for the assessee that similar additional grounds were raised before the Tribunal in A.Y 2011-12 and the Tribunal in ITA No. 1539/DEL/2016 has decided the issue in favour of the assessee and against the revenue. 16. We have carefully gone through the additional grounds raised and have duly considered the order of the co-ordinate bench inn ITA No. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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