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TMI Blog2021 (8) TMI 1142X X X X Extracts X X X X X X X X Extracts X X X X ..... a non-banking finance company. The return of income for the year under consideration was filed by it on 30.09.2014 declaring a total income of Rs. 1,23,83,710/-. In the assessment completed u/s 143(3) vide an order dated 06.12.2010, the income for the year under consideration as declared by the assessee-company in its return of income was accepted by the AO. The record of the said assessment came to be examined by the concerned Ld. Pr. CIT and on such examination, he noted that there was an under assessment on the following issues: "i. Rs. 51,31,012/- on account of interest income ii. Rs. 7,31,694/- u/s 14A read with Rule 8D iii. Rs. 2,07,87,192/- and Rs. 18,13,075/- on account of interest and brokerage respectively" 3. The Ld. Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... okerage. However, as per point no. 34(a) of Audit Report in form 3CD it is seen that there is interest payment of Rs. 9,28,21,545/- and brokerage payment of Rs. 31,19,548/-. This resulted in an under assessment of Rs. 2,07,87,192/- on account of interest and Rs. 18,13,075/- on account of brokerage." 4. In reply, the following written submission was filed on behalf of the assessee-company before the Ld. Pr. CIT: "With reference to your notice No. PCIT, Kol-5/263/M/s. Sunshine Tracon Pvt. Ltd./2017-18 dated 17.01.2019 we would like to state that Audit objection was raised & reply was filed accordingly through our authorized representative Mr. Sushil Kumar Purohit, we are once again submitting the details as follows: i. On perusal of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for A.Y. 2014-15 is not erroneous & the same is not prejudicial to the interest of revenue." 5. The above written submission filed by the assessee-company did not find favour with Ld. Pr. CIT for the following reasons given in his impugned order: "The reply of the assessee was gone through. Non explanation was furnished in reply to the queries raised vide the show cause instead a bad and cryptic remark was made by the assessee in answer to every query that break up along with explanation were enclosed whereas no such submission or break up was furnished. In the circumstances as stated above, it is statutorily preserved that the assessee had nothing to say to contradict the issues raised vide the show cause dated 14.11.2018 on other wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation, there was no question of making any disallowance u/s 14A read with Rule 8D and there was thus no error in the order of the AO dated 06.12.2016 passed u/s 143(3) on this issue as allegedly pointed out by the Ld. Pr. CIT in his impugned order. He also submitted that in the written submission filed before the Ld. Pr. CIT during the course of proceedings u/s 263, this material aspect of the matter relevant to the issue was specifically pointed out on behalf of the assessee-company, but without taking into consideration the same and without giving any finding on the submission made on behalf of the assessee-company, the Ld. Pr. CIT set aside the order passed by the AO u/s 143(3) on this issue with the direction to decide the same afresh. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed order, a very cryptic remark was made by the assessee in answer to every query raised in the notice issued u/s 263. At the time of hearing before the Tribunal, the ld. counsel for the assessee has submitted that a note on section 14A was separately enclosed by the assessee-company along with the written submission filed before the Ld. Pr. CIT. However, as clearly noted by the Ld. Pr. CIT in his impugned order, no such note or break-up was furnished by the assessee-company along with the written submission. As submitted by the Ld. CIT DR, this issue relating to the disallowance u/s 14A read with Rule 8D was not at all examined by the Assessing Officer during the course of assessment proceedings and there is nothing brought on record on be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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