TMI Blog2023 (6) TMI 336X X X X Extracts X X X X X X X X Extracts X X X X ..... i Kanv Bali, Sr. D.R. ORDER PER ANIL CHATURVEDI, AM: This appeal filed by the assessee is directed against the order dated 13.09.2017 of the Commissioner of Income Tax (Appeals)-30, New Delhi relating to Assessment Year 2014-15. 2. Brief facts of the case as culled out from the material on record are as under:- 3. Assessee is a company stated to be engaged in the business of real estate consultations. Assessee filed its return of income for A.Y. 2014-15 on 30.09.2014 declaring total income of Rs.40,26,526/-. The case was selected for scrutiny and thereafter assessment was framed u/s 143(3) of the Act vide order dated 26.12.2016 determining the total income at Rs.62,80,130/- by disallowing Rs.22,53,600/- u/s 14A of the Act. 4. Aggrieved by the order of AO, assessee carried the matter before CIT(A). CIT(A) upheld the order of AO and also made enhancement by observing as under: 4.6 It was found that the appellant, by creative/clever presentation of figures, claimed benefit of expenditure even against Income under the head House Property', against which no other expenditure (except expenditure prescribed in section 24(a) and 24(b) of the Act), can b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As worked out by the appellant Disallowance u/s 14A 2,24,324 Disallowance computation 1541272 Balance to be disallowed 483052 4.7.3 I find that the disallowance of Rs. 15,41,272/-, made by the appellant, consisted of, among other things, municipal tax paid on property let out on rent amounting to Rs. 7,98,073/- and other items. When property has been let out on rent, and income there from admittedly disclosed as Income under the head House Property, otherwise then the 30% deduction u/s 24, no other deduction is allowable. In fact, I note that the appellant has been misleading Revenue by claiming in his write up that taxable income for purposes of working out proportionate expenses should include Income under the head House Property. Thus, the appellant, to misguide revenue, claimed that the disallowance u/s 14A should be Rs. 20,24,324/- out of which the appellant claimed to have already disallowed Rs. 15,41,272/-. I find that appellant had in this manner, been able to misguide the first appeal authority during ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 86.77 20,24,324 31,74,341 Total 1,98,73,02 1,22,17,300 100 100 37,94,872 36,58,339 As worked out by the appellant As proposed by me Disallowance u/s 14A 20,24,324 31,74,341 Disallowance in computation 15,41,272 N.A. Balance to be disallowed 4,83,052 31,74,341 The disallowance in computation, as claimed to have been suo moto offered by the appellant at Rs.15,41,272/-, is not in accordance with provisions of section 14A r.w.r. 8D. The same therefore, needed to be re examined. 4.7.5 As such, on the basis of working as above, I proposed to enhance the disallowance to Rs.31,74,341/-, instead of the disallowance made by the AO at Rs.22,53,600/-. 5. CIT(A) has also noted that the notice for enhan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) has erred in law and on facts in enhancing the addition u/s 14A from Rs. 22,53,600 to 31,74,341/- without appreciating the facts and circumstances of the case. 2.1 That having regard to the facts and circumstances of the case, the Ld. CIT(A) erred in disallowing expenditure of Rs. 31,74,341/- against the total expenditure of Rs. 22,53,600/- claimed by the appellant in the return of income. 3. That having regard to the facts and circumstances of the case, the disallowance is highly excessive and uncalled for. 4. That the Ld. CIT(A) erred in observing in observing in paragraph no. 4.73 on page 14 that I find that appellant had in this manner, been able to misguide the first appeal authority during appeal proceedings for A.Y 2012-13. in appeal No. 190/15-16/2167 and that these remarks may be expunged. 5. That various grounds are without prejudice to one another 6. That the assessee craves the leave to add, alter or amend the grounds of appeal in the course of hearing of the appeal. 7. The case file reveals that the present appeal was listed for hearing on various occasions and on all the occasions, assessee did not appear before the Tribunal desp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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