TMI Blog2023 (3) TMI 1228X X X X Extracts X X X X X X X X Extracts X X X X ..... urther find that there is no finding of the lower authorities on the investments which have yielded exempt income. Disallowance u/s. 14A needs to be reworked by the AO, in view of the decision of Cargo Motors (P) Ltd. (supra).This ground of assessee is allowed for statistical purposes. - ITA No. 1422/Del/2018 - - - Dated:- 15-3-2023 - SH. ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SH. N.K CHOUDHRY, JUDICIAL MEMBER For the Assessee : Shri Salil Kapoor, Adv. Ms. Ananya Kapoor, Adv. Shri Amarbir Singh, Adv. For the Revenue : Shri Jitender Chand, Sr. DR ORDER PER ANIL CHATURVEDI, AM : This appeal filed by the assessee is directed against the order dated 20.11.2017 of the Commissioner of Income Tax (Appeals)-New Delh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvocation of Sec 14A and Rule 8D against the assessee is illegal and bad in law. No valid satisfaction is recorded by the AO to invoke Sec 14A / Rule 8D against the assessee. 4. That the CIT(A) has failed to appreciate that the suo moto disallowance of Rs 3,37,76,274/- made by the assessee in its return is based on a scientific and logical calculations and the same have been ignored by the AO and CIT(A). No more disallowance is called for on the facts of the case. 5. That the calculations made by the AO to compute disallowance of Rs. 83,88,530/- over and above the amount of Rs. 3,37,76,274/- suo-moto disallowed by the assessee is illegal, bad in law, and against various judgments of Income Tax Appellate Tribunal, High Court and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... though assessee has various grounds but he would like to argue only ground no. 7 and the other grounds be treated as not pressed. Considering the aforesaid submission of Ld. AR, we dismiss the other grounds of assessee and proceed to dispose of ground no. 7. 7. During the course of assessment proceedings, AO on perusing the Balance Sheet of the assessee as on 31.03.2013 noticed that assessee had investments in equity shares and had earned dividend income to the tune of Rs. 13,25,07,176/- and assessee had suo motto disallowed Rs. 3,35,91,350/- u/s. 14A of the Act. During the course of assessment proceedings assessee furnished detailed computation of 14A r.w.r 8D but the same was not found acceptable to AO. AO thereafter by invoking the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14A r.w.r 8D. He further submitted that the assessee does not agitate the suo moto disallowance made by the assessee and if on reworking the disallowance by AO, if the disallowance works out to a figure which is less than the suo moto disallowance made by assessee the disallowance be restricted to the suo moto disallowance. 10. Learned DR on the other hand, strongly supported the order of AO. 11. We have heard the rival submissions and perused the materials available on record. Before us, assessee is challenging the working of disallowance u/s. 14A r.w.r 8D. Before us learned AR has contended that for working out of disallowance u/s. 14A r.w.r 8D, AO has considered total average investments instead of average investments which have yi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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