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TMI Blog2021 (9) TMI 921X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the appeal of the assessee are confirmation of addition of Rs..39,08,750/- made under section 14A r.w. Rule 8D and confirmation of addition to income from capital gains. 2. The above appeal is filed with a delay of one day, for which, the assessee has filed a petition in support of an affidavit for condonation of the delay, to which; the ld. DR has not raised any serious objection. Consequently, since the assessee was prevented by sufficient cause, the delay of one day in filing of the appeal stands condoned and the appeal is admitted for adjudication. 3. Brief facts leading to the addition made under section 14A of the Act are that the Assessing Officer found that the assessee had made investments in securities yielding exempt inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... investment was not to earn exempt income. By following the decision in the case of Maxopp Investment Ltd. [(2018) 91 taxmann.com 154 (SC)], the ld. CIT(A) dismissed the ground raised by the assessee. We have perused the decision in the case of Maxopp Investment Ltd. v. CIT (supra), wherein, the Hon'ble Supreme Court has observed that as long as an exempt income was earned, the expenditure incurred as attributable to earning such exempt income, had to be disallowed under section 14A of the Act. Moreover, the Hon'ble Supreme Court has also held that irrespective of the objective of investment in shares (when the shares are held as stock-in-trade with a view to earn trading profits or as investment representing controlling interest) and the ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as well as the buyer was to put the land to use for non-agricultural purposes, the Assessing Officer denied the claim of the assessee and brought to tax. 6.1 On appeal, the submissions made by the assessee as well as observations of the ld. CIT(A) are reproduced as under: "9. In the course of appeal, the appellant submitted that they had furnished the details of land tax paid as per the records of the State Revenue. The appellant also stated that they had furnished the Encumbrance Certificate for the said land which showed that the land was agricultural land. The appellant also submitted that they had been offering agricultural income in the return. As regards the definition of Capital Asset under section 2(14), the appellant submitted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... intention of the sale was not to use it for agricultural purpose but exploit it commercially, the benefit of the agricultural land cannot be allowed. In view of the same, this ground of appeal is dismissed." 6.2 On being aggrieved, the assessee is in appeal before the Tribunal. By filing the schedule of immovable properties, the ld. Counsel for the assessee prayed for exemption on the gains arising from the sale of land being agricultural land. On the other hand, the ld. DR strongly supported the orders of authorities below. 6.3 We have heard both the sides, perused the materials available on record and gone through the orders of authorities below including paper book filed by the assessee. Since the assessee failed to place on record com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tural land cannot be allowed, the ld. CIT(A) dismissed the ground raised by the assessee. 6.4 Before us, in support of the claim of the assessee, the ld. Counsel for the assessee has filed schedule of immovable properties containing the details of document number, area, survey number, village/taluk/district/SRO and boundary, located at Thottipalayam village of Tirupur, Karapakkam village & Sholinganallur village of Tambaram Taluk, Madukarai village of Coimbatore South Taluk, Kavundanpalayam village of Coimbatore North taluk, Neelambur village of Sulur Taluk, Senneerkuppam village of Poonamallee Taluk, Sanganoor village of Coimbatore Taluk, but what prevented the assessee in filing the sale deed either before the authorities below or before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deration as mandated in the provisions of the Act. The ld. Counsel for the assessee has also filed copy of the judgement of Hon'ble High Court of Bombay in the case of PCIT v. Reliance Capital Asset Management Ltd. [2017] 86 taxmann.com 200 and decision of the ITAT Bangalore Bench in the case of DCIT v. Subramanya Constructions & Development Co. Ltd. [2015] 58 taxmann.com 219. First of all, both the case law have no relevance to the additional grounds of appeal raised in the memorandum of additional grounds of appeal. Secondly, while confirming the disallowance, the ld. CIT(A) followed the decision of Hon'ble Supreme Court in the case of Maxopp Investment Ltd. v. CIT 402 ITR 640, which was pronounced on 12.02.2018, supersedes the decisions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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