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TMI Blog2022 (7) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... e (NFAC), Delhi [in short ld. "CIT(A)"] dated 25.11.2021 arising out of the separate assessment orders framed u/s 143(3) of the Act. 2. Registry has informed that the captioned three appeals are time barred by 24 days. Condonation applications have been filed by the assessee. Perusal of the same shows that the delay was on account of COVID-19 restrictions. We, therefore, in view of the judgment of The Hon'ble Supreme Court vide Miscellaneous Application No. 21 of 2022 find that the limitation period in filing appeal between 15.03.2020 till 28.02.2022 has been excluded for calculating the limitation period in filing appeal under this period. Since the period of limitation in the course of the assessee falls during this period, the same dese ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellate order passed was in violation of principals of natural justice hence is bad in law and be quashed. 2. For that the Learned CIT(Appeals) erred is passing the appellate order without considering the written submission filed on 26/03/2018. 3. For that the Learned CIT(Appeals) erred is passing the appellate order without giving proper opportunity of hearing to the assessee. 4. For that the Learned CIT(Appeals) erred in adding Rs.8,67,004 on account of disallowance u/s 14A of the Income Tax Act, 1961 read with section Rule 8D of the Income Tax Rules, 1962. This addition is unjustified and the same be deleted. 5. For that the interest computed u/s 234 A/B/C of the IT Act 1961 is over charged and wrongly calculated and or is not ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case hence the interest be deleted and or correctly computed. 7. The appellant craves leave to produce additional evidences in terms of Rule 29 of the Income Tax (Appellate Tribunal) Rules 1963. 8. The appellant craves leave to press new, additional grounds of appeal or modify, withdraw any of the above grounds at the time of hearing of the appeal." 4. From perusal of the grounds, first, common issue relates to disallowance u/s 14A of the Act at Rs. 8,95,826/-, Rs. 8,67,004/- & Rs. 7,78,825/- for AY 2013-14 to AY 2015-16. The common fact for all these three years is that during the course of assessment proceedings, ld. Assessing Officer (in short ld. "AO") observed that the assessee has received exempt income and has also made investme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rm of partner's capital available at the close of the year is sufficient to cover the alleged investments fetching exempt income. 6. Per contra ld. D/R vehemently argued supporting the orders of the lower authorities. 7. We have heard rival contentions and perused the records placed before us. The common issue raised for AY 2013-14 to AY 2015-16 relates to the disallowance u/s 14A of the Act at Rs. 8,95,826/-, Rs. 8,67,004/- & Rs. 7,78,825/- respectfully. As regards the contention of the ld. Counsel for the assessee that the alleged disallowance is uncalled for as ld. AO has not recorded necessary satisfaction regarding the correctness of the claim of the assessee. To examine this aspect, we will first go through the relevant provisions o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n to the determination of the disallowance u/s 14A of the Act As per Rule 8D prescribed under the Rules is that ld. AO with regard to the accounts of the assessee needs to satisfy that whether the claim of the assessee in respect of such expenditure in relation to the exempt income is incorrect. Only after recording proper satisfaction to this effect the ld. AO can proceed to compute the disallowance as per Rule 8D of the Rules. 9. Hon'ble apex Court in the case of Maxopp Investment Ltd. had made the following observations: "51. Having regard to the language of Section 14-A(2) of the Act, read with Rule 8-D of the Rules, we also make it clear that before applying the theory of apportionment, the AO needs to record satisfaction that havin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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