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TMI Blog2023 (4) TMI 531X X X X Extracts X X X X X X X X Extracts X X X X ..... in these appeals are as under: ITA No.5907/Del/2019 for AY 2010-11 "1 That on the facts and in the circumstances of the case, the Ld. Commissioner of Income Tax (Appeals) (hereinafter 'Ld. CIT(A)') erred on facts and in law by upholding the assessment made by the Ld. Assessing Officer (hereinafter 'Ld. AO') by assessing the total income of the Appellant at Rs. 213,37,89,875/- as against the income of Rs. 213,28,15,002/- claimed by the Appellant. 2. That on the facts and in the circumstances of the case, the Ld. C1T(A) erred on facts and in law in upholding the disallowance of Rs. 9,74,876/- made by the Ld. AO under section 14A of the Income-tax Act, 1961 (hereinafter 'the Act') as expenditure incurred in earning exempt dividend incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed on the basis of surmises and conjectures. 3. That on the facts and in the circumstances of the case, the Ld. CIT(A) erred on facts and in law in upholding the order of the Ld. AO whereby the amount of tax as well as the refund due to the Appellant has been computed incorrectly. 4. That on the facts and in the circumstances of the case, the Ld. CIT(A) erred on facts and in law in upholding the order of the Ld. AO whereby the Ld. AO has incorrectly imposed interest under section 234C of the Act. 5. That on the facts and in the circumstances of the case, the Ld. CIT(A) erred on facts and in law in upholding the order of the Ld. AO whereby the Ld. AO has incorrectly imposed interest under section 220(2) of the Act. 6. That o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cumstances of the case, the Ld. CIT(A) erred on facts and in law in upholding the order of the Ld. AO whereby expenditure has been disallowed by a wrong application of Rule 8D(2) of the Rules and without following the principles laid down in various judicial precedents. 2.3 That on the facts and in the circumstances of the case, the Ld. CIT(A) erred on facts and in law in upholding the order of the Ld. AO whereby the order is passed without adhering to the instructions given by the Hon'ble Indore Bench of the ITAT vide the order dated 14th July 2017 in the Appellant's own case in ITA Nos. 583 & 584/Ind/2013 for A.Y.s 2010-11 and 2011-12. 2.4 That on the facts and in the circumstances of the case, the Ld. C'IT(A) erred on facts and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income, which has been claimed as exempt u/s 10 of the Act in the return of income. The assessee has not made any suo moto disallowance of expenses u/s 14A of the Act. 4.1. This is a second round of appeal before this Tribunal. This Tribunal in the first round of proceedings in ITA No.570 & 571/IND/2013 dated 14/07/2017 had set aside the matter to the file of the Ld. Assessing Officer ("Ld. AO", for short) with the direction to the Ld. AO to record proper satisfaction, which is mandated in terms of section 14A (2) and 14A(3) of the Act read with Rule 8D(1) of the Income Tax Rules. We have gone through the assessment order wherein, the Ld. AO confronted with the assessee as to why disallowance of expenses could not be made u/s 14A of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I am therefore satisfied that the claim of the assessee that just because much activity is not required upon computing the disallowance under rule 8D is not acceptable. Accordingly disallowance under section 14A read with rule 8D of the rules is worked out as under:- Investment on 1st day i.e. 01.04.2009 83,54,09,000/- Investment on last day i.e. 31.03.2010 66,99,61,000/- Average investment 75,26,85,000/- Disallowance 0.5% of average investment 37,63,425/-" 4.2. We find that the aforesaid satisfaction recorded by the Ld. AO cannot be construed as an objective satisfaction recorded by the Ld. AO having regard to the accounts of the assessee. The mandate of section 14A(2) and 14A(3) of the Act read with Rule 8D(1) of the Rules ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s would be consequential in nature and does not require any specific adjudication. However, AO is directed to charge interest u/s 220(2) of the Act in accordance with law. 7. Ground No.6 raised by the assessee is challenging the incorrect grant of interest u/s 244A of Act on refund. The Ld. AO is directed to grant interest u/s 244A of the Act in accordance with law. 8. The appeal of the assessee for AY 2011-12 in ITA No.13/Del/2021 also contain the identical issue. Both the parties mutually agreed that the issue raised in AY 2011-12 is identical to that raised in AY 2010-11. Hence, the decision rendered by us herein above for AY 2010-11 shall apply mutatis mutandis for AY 2011-12 also except which variance in figures. Accordingly, grounds ..... X X X X Extracts X X X X X X X X Extracts X X X X
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