9911796707
TMI Blog2023 (5) TMI 460X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the Income-tax Act, 1961 (hereinafter referred to as the "Act"), dated 31.12.2007, 30.12.2008 and 09.02.2009 respectively. 2. In all the three appals, there is a common ground in respect of denial of exemption on agriculture income while computing the total income of the assessee except variance in amount. Also, there is a ground common for AY 2005-06 and 2007-08 in respect of disallowance made u/s. 14A of the Act. All other grounds are specific to AY 2005-06. 3. We will take the lead case as one for AY 2005-06 in ITA No. 934/Kol/2019 results of which will apply mutatis mutandis in respect of the above stated common ground in the other two assessment years. So grounds in respect of AY 2005-06 are reproduced as under: "1. That on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... craves leave to add, alter, amend, amplify or modify any or all of the above grounds of cross objections at or before the time of hearing of the appeal." 4. There is a delay in filing the present appeals of 17 days in AY 2005-06, 5 days in AY 2006-07 and 17 days in AY 2007-08 for which petition for condonation of delay is placed on record. From the said petition, it is noted that assessee had made payment of appeal filing fees under a wrong subhead in the challan. Assessee got the challan corrected from the Ld. AO by having the correct head of payment for appeal filing fees which resulted into the aforesaid delays. Necessary documentary evidences are placed on record in this respect. Considering this, the delay in filing the three appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rn under a new management namely, Progressive Star Finance Pvt. Ltd. (PSFPL) for which Ld. National Company Law Tribunal (NCLT) has passed its order dated 03.03.2022. Owing to take over of the assessee by new management of PSFPL, time was sought by the Ld. AR to prepare the case and represent the matter before the Bench. Subsequently, adjournment applications were filed on 28.07.2022 and 03.11.2022 seeking time to collate the information from the new management. On the last hearing dated 16.01.2023, Ld. AR again sought an adjournment on the same premise which was granted. However, on this present date of hearing on 13.03.2023 none appeared on behalf of the assessee. It is noted that Ld. NCLT had passed its order on 03.03.2022 and it has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ld. AO. Considering these facts on record, we do not find any reason to interfere with the finding given by the Ld. CIT(A). Accordingly, this ground of appeal of assessee is dismissed. 9. Ground no. 2 is in respect of disallowance on professional fees paid by the assessee. 9.1. Assessee had incurred expenditure towards professional fees by making payments to Khaitan & Co., VINL, VISA.Com Trade & Phalguni Bag. Ld. AO enquired about the nature of services rendered in respect of these payments as well as details of TDS thereon which remained unverified as to whether it relates to assessee's business or to earning of rental income or for acquisition of property. In the course of First Appellate Proceedings, Ld. CIT(A) gave relief and allow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- as proportionate management expenses for making a disallowance u/s. 14A of the Act. Ld. CIT(A) confirmed this disallowance. 11.2. From the observations made by the ld. AO, we note that there is no direct nexus which has been established by the Ld. AO for treating 50% of the remuneration of the Managing Director for disallowance u/s. 14A of the Act. Further, provisions of Rule 8D under the Income Tax Rules, 1962 came into effect from 24.03.2008 by IT (5th Amendment) Rules, 2008. The case before us is in respect of AY 2005-06 and the other one being for AY 2007-08 for which Rule 8D cannot be applied. Accordingly, considering the provisions of law and the ad-hoc treatment of considering 50% of remuneration of the Managing Director towards ..... X X X X Extracts X X X X X X X X Extracts X X X X
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