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TMI Blog2021 (5) TMI 817X X X X Extracts X X X X X X X X Extracts X X X X ..... the same of brevity we would like to dispose the said appeals by this common order. 2. First we take ITA No. 2332/Ahd/2018 for A.Y. 2013-14 as the lead case for the purpose of adjudication. The Revenue has raised the following grounds of appeal: 1. That the Ld. CIT(A) has erred in law and on the facts in deleting the addition made on account of disallowance of Management charges of Rs. 62,00,000/- u/s. 40A(2)(b) of the IT Act, 1961. 2. That the Ld. CIT(A) has erred in law and on the facts in deleting the addition made on account of disallowance of Rs. 16,66,022/- u/s. 14A r.w.r. 8D of the I.T. Act, 1961. 3. The facts of this case are that assessee is in the business of providing Medical Health facilities. During the course of assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssible and held that in this case the assessee has developed such colourable device, that the assessee company and Adarsh Foundation share profit even before making the payment of income-tax on such profit. This is nothing but a well planned story carved out to evade tax, moreover no TDS has been deducted and Ld. AO held that Rs. 1,62,00,000/- paid to Adarsh foundation in the name of management charges are covered u/s. 40A(2)(b) of the Act is not allowed as business expenditure incurred by the assessee during the course of running his business. 4.1. The Ld. AO also made an addition of Rs. 16,66,022/- u/s. 14A of the Act and he mentioned that assessee has earned exempt income of Rs. 3,40,000/- in the form of dividend but assessee has not di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1811/Ahd/2015 for A.Y. 2011-12 were in the ITAT held that provision of section 40(a)(ia) of the Act are not applicable in the case of the assessee and on the base of the consistency matter was decided in favour of the assessee. 7. Thus, in parity with the ITAT orders in ITA No. 1518/Ahd/2012 for A.Y. 2009-10 and ITA No. 1811/Ahd/2015 for A.Y. 2011-12, we dismiss the ground of appeal. In the result, this ground of appeal of the revenue is dismissed. 8. Now we come to the next ground of appeal of the revenue relating to disallowance of Rs. 16,66,022/- u/s. 14A r.w.r. 8D of the IT Act, 1961. 9. In this case the assessee is having huge interest free funds for making investments and there being no nexus of the borrowed funds and investments ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowance of Rs. 38,39,889/- u/s.14A r.w.r. 8D of the Act. 14. In similar facts and circumstances in connected appeal, the appeal of the revenue was dismissed by us and in this case exempt income of assessee is Rs. 20,34,550/- therefore we restrict the addition of Rs. 20,34,550/-. In the result this ground of appeal of revenue is dismissed. 15. Now coming to the ITA No. 2334/Ahd/2018 for A.Y. 2015-16. The revenue has raised the following ground of appeal: 1) That the "Ld. CIT(A)" has erred in law and on the facts in deleting the addition made on account of disallowance of Management Charges of Rs. 2,38,00,000/- u/s. 40A(2)(b) of the I.T. Act, 1961. 16. In connected to ITA No. 2332/Ahd/2018 and ITA No. 2333/Ahd/2018 for A.Ys. 2013-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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