TMI Blog2021 (12) TMI 539X X X X Extracts X X X X X X X X Extracts X X X X ..... ible. In these circumstances, we are of the considered view that the issue has not been examined by ld. CIT(A) by thrashing the facts in the light of the law applicable thereto. Consequently, this issue is remitted back to the ld. CIT(A) to decide afresh in the light of the decisions rendered by Hon ble Delhi High Court in the cases of as Joint Investments (P.) Ltd. [ 2015 (3) TMI 155 - DELHI HIGH COURT] AND MAXOPP INVESTMENT LTD., CHEMINVEST OTHERS [ 2011 (11) TMI 267 - DELHI HIGH COURT] . Payment to its Associated Enterprise, M/s. Hero Global Design Ltd., for providing engineering services - HELD THAT:- The issue is identical and services have been rendered by M/s. Hero Global Design Limited, and since then business model has not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for AYs 2013-14 2014-15 respectively) crores being the investment made by the assessee in Debt Oriental Mutual Funds under growth option for working out the amount of average investment for the purpose of computation or disallowance u/s 14A read with rule 8D merely by passing a cryptic order accepting the claim of the assessee that investment in mutual funds was in a debt oriented scheme under growth option not entitled to tax exempt dividend and income on sale/redemption of such mutual fund is taxable under the head 'Capital Gain', without verifying the claim made by the assessee 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in directing to exclude the amount (₹ 82.12 crores ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8377; 91,15,42,456/- in equity shares and units of mutual funds on which assessee had received dividend income of ₹ 1,085/- ₹ 13,914/- for AYs 2013-14 2014-15 respectively. Assessing Officer (AO) declining the contentions raised by the assessee by invoking the provisions contained u/s 14A read with Rule 8D computed the disallowance at ₹ 2,20,20,543/- ₹ 1,99,76,847/- (₹ 2,03,52,913/- - ₹ 3,76,066/-) for AYs 2013-14 2014-15 respectively. AO also made addition of ₹ 31,74,044/- ₹ 37,68,570/- being the payment of expenses made by the assessee company to M/s. Hero Global Design Ltd. by treating the same not incurred in the ordinary course of business and thereby framed the assessment at &# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s lost sight of all the facts brought on record by the assessee. Thus, the entire findings are cryptic and incomprehensible. In these circumstances, we are of the considered view that the issue has not been examined by ld. CIT(A) by thrashing the facts in the light of the law applicable thereto. Consequently, this issue is remitted back to the ld. CIT(A) to decide afresh in the light of the decisions rendered by Hon ble Delhi High Court in the cases of as Joint Investments (P.) Ltd. vs. CIT 372 ITR 694 and Maxopp Investment Ltd. vs. CIT (2012) 347 ITR 272 (Del.) by providing an opportunity of being heard to the assessee. So, Grounds No.1 2 in ITA Nos.5579/Del/2017 5580/Del/2017 are determined in favour of the Revenue for statistical p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 26.02.2020. 10. We have perused the aforesaid order passed by the Tribunal which is qua identical issues as to making payment to its Associated Enterprise, M/s. Hero Global Design Ltd., for providing engineering services. Operative part of the order (supra) is as under :- 8. It was submitted before the revenue authorities that M/s Hero Global Design Ltd. rendered Engineering Consultancy, CAD/CAM designing which are professional services technically called Re-Engineering Services using special ized software by which the fragmentation of drawings supplied by the customers of assessee into sub-parts is done to facilitate manufacturing and costing. Three diploma engineers and one ITI is the total staff of M/s Hero Global Design Ltd. an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duate engineer. The quantum of payment is very small considering the turnover of the assessee. Moreover, once the sample production is approved, the same product is manufactured and supplied to the client in large numbers without any further payment to M/s Hero Global Design Ltd. The work done by M/s Hero Global Design Ltd could have been done by a small section in the assessee company within the very same premises by the same four employees. However, even then the assessee would have been required to pay salary to those four persons. Though the services have been rendered through M/s Hero Global Design Ltd, the payment made by the assessee to M/s Hero Global Design Ltd just matches the employee cost of M/s Hero Global Design Ltd, which wou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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