TMI Blog2019 (9) TMI 1501X X X X Extracts X X X X X X X X Extracts X X X X ..... ould be several likely outcomes in these proceedings - many of them possibility impinging upon the rights of the assessee to receive advance amount itself along with interest either in whole or in part. In these circumstances, the ITAT s conclusions that there was no crystallized right to receive any particular amount or amounts, cannot be faulted. Addition u/s 14A r.w.r. 8D - expenditure incurred for earning the tax free income - HELD THAT:- We find the Tribunal vide ITA [ 2017 (4) TMI 1528 - ITAT DELHI ] 24.04.2017 while deleting the disallowance stating According to the provisions of section 14A(2), the Ld. assessing officer before invoking the applicability of Rule 8D should have explained as to why the voluntary disallowances or n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (iv) That in any case, if such addition is considered as income, deduction should be allowed in respect of counter claim by other party. 3. Facts of the case, in brief, are that the assessee is a company engaged in the business of technical and engineering consultancy and export sale. It filed its return of income on 27.09.2010 declaring total income of ₹ 208,85,63,579/-. During the course of assessment proceedings the Assessing Officer noted from the consolidated notes to accounts point no.12.0 of Schedule N that interest of ₹ 201.66 lacs [ ₹ 984.26 lacs 782.60 lacs (previous year)] on mobilization advance due from the executing agency has not been recognized as income although the same has become due during the F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter the approval is granted by the competent authority. He submitted that the decision of the Tribunal was challenged by the revenue and the Hon ble High Court in ITA No.404/2-16 order dated 06.12.2016 dismissed the appeal filed by the revenue. Therefore, this being a covered matter in favour of the assessee, the grounds raised by the assessee should be allowed. 6. The Ld. DR on the other hand heavily relied on the order of the Assessing Officer and the CIT(A). She however conceded that the Tribunal has decided the issue in favour of the assessee for A.Y.2008-09 and 2009-10 and the appeal filed by the revenue against the order of the Tribunal for A.Y.2008-09 has been dismissed by the Hon ble High Court. 7. We have considered the rival ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t otherwise and terminated the contract. There could be several likely outcomes in these proceedings - many of them possibility impinging upon the rights of the assessee to receive advance amount itself along with interest either in whole or in part. In these circumstances, the ITAT s conclusions that there was no crystallized right to receive any particular amount or amounts, cannot be faulted. 8. We further find the Tribunal in assessee s own case for A.Y2009-10 in ITA No.2826/Del/2014 order dated 24.04.2017 has also deleted the addition made by the Assessing Officer and sustained by the CIT(A). In view of the above discussion and considering the fact that the order of the Tribunal for A. Y.2008-09 has been upheld by the Hon ble Hig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umstances the Tribunal in assesee s own case for A.Y.2009-10 in ITA No.2826/Del/2014 order dated 24.04.2017 has deleted such disallowance. He accordingly submitted that this being a covered matter in favour of the assessee, the ground raised by the assessee should be allowed. 13. The Ld. DR on the other hand strongly supported the order of the AO and CIT(A). 14. We have considered the rival arguments made by both the sides and perused the orders of the authorities below. We find the Assessing Officer in the instant case applying the provisions of section 14 A r.w. Rule 8D disallowed an amount of ₹ 17,80,998/-being the expenditure incurred for earning the tax free income of ₹ 1,02,89,859/-. We find the Ld. CIT(A) sustained ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
