TMI Blog2023 (3) TMI 465X X X X Extracts X X X X X X X X Extracts X X X X ..... n the order under section 263 of the Act. The ld.AR has not brought to our notice any document to demonstrate that the AO had carried out enquiries regarding impugned issues. Assessee has not answered or provided any information regarding the impugned issues. It is also an admitted fact by the assessee that inadvertently excess depreciation has been claimed, which is one of the impugned issues. Computation of taxability under section 115JB is affected by excess depreciation claim. Therefore, to the extent of Computation of Taxability under section 115JB and excess depreciation, there is no doubt that the assessment order is erroneous and prejudicial to the interest of the Revenue. As far as other issues are concerned, we have already ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome Tax-1, Aurangabad dated 18.03.2019 emanating from assessment order of Assessing officer dated 06.06.2016under section 143(3)of the I.T.Act, 1961 for the A.Y.2014-15. The Assessee has raised the following grounds of appeal: A) The Ld. PCIT-(1) has failed to appreciate that the matter in question has been considered by the Ld. AO at the time of Scrutiny proceedings and erred in passing the order u/s 263, of the Income Tax Act, 1961 and opening the matter for revision. B) For that, your petitioner craves the right to put additional grounds at the time of appeal. Brief facts of the case : 2. The Assessing Officer(AO), ld.ACIT, Nanded Circle had passed an assessment order under section 143(3) of the Act, on 06.06.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nterest of the Revenue as AO had made necessary enquiries and then passed the assessment order. The ld.AR submitted that as far as question of investment of Rs.30 lakhs is concerned, the assessee has not earned any exempt income during the year. Therefore, there is no question of disallowance under 14A of the Act. The ld.AR also submitted that reduction in share application money was due to refund of share application by the assessee. The ld.AR filed a paper book. The ld.AR relied on the decision of the Hon ble Supreme Court in the case of CIT Vs. Max India Limited. The ld.Departmental Representative(ld.DR) Submissions : 5. The ld.DR relied on the order of the ld.Pr.CIT, Aurangabad. The ld.DR specifically stated that AO has not c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e have perused the submission made by the Assessee during the assessment proceedings which is on page no.34 to 39 of the paper book submitted by the assessee. On perusal of the submission of the assessee at page no.34 to 39 of paper book, it is observed that assessee has not answered or provided any information regarding the impugned issues. It is also an admitted fact by the assessee that inadvertently excess depreciation has been claimed, which is one of the impugned issues. Computation of taxability under section 115JB is affected by excess depreciation claim. Therefore, to the extent of Computation of Taxability under section 115JB and excess depreciation, there is no doubt that the assessment order is erroneous and prejudicial to the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14A of the Act. 7.1 The Hon ble jurisdictional High Court in the case of Pr.CIT vs Kohinoor Project (P.) Ltd [2020] 121 taxmann.com 177 (Bombay) has held as under : Quote, Section 14A of the Act deals with expenditure incurred in relation to income not includible in total income. As per sub-section (1) of section 14A, for the purpose of computing the total income, no deduction shall be allowed in respect of expenditure incurred by the assessee in relation to income which does not form part of the total income. In Cheminvest Ltd. (supra) Delhi High Court examined the expression does not form part of the total income as appearing in sub-section (1) of section 14A of the Act. Delhi High Court held that the said expression envisages ..... X X X X Extracts X X X X X X X X Extracts X X X X
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