TMI Blog2023 (12) TMI 866X X X X Extracts X X X X X X X X Extracts X X X X ..... llowance. Onc eAO has worked out the disallowance with the help of Rule 8D(2), then, he was not required to add the amount suo motu disallowed by the assessee. Disallowance worked out by him will look all the considerations and there is no need to make separate addition of Rs. 9,134/- made by the assessee on its own estimate. In the present case, there are expenditures, but the expenditures relatable to exempt income could not be demonstrable. Ld. Assessing Officer has to take help of the formula under Rule 8D and worked out the disallowance. Therefore, the assessee could not buttress its case on the strength of the above decisions. We do not find any merit in these grounds of appeal. They are rejected. Computation of tax u/s 115BBE - as argued when no income was brought to tax under sections 68, 69, 69A, 69B, 69C or 69D, then no computation of tax under section 115BBE was required to be made - HELD THAT:- A specific reference is being made to serial nos. 10 and 25 of the computation sheet. If that be the situation, then ld. Assessing Officer could not compute the tax under section 115BBE out of the disallowance under section 14A of the Income Tax Act. The ld. CIT(A) h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. Brief facts of the case are that the assessee has filed its return of income on 27.10.2017, which was revised on 16.07.2018 disclosing total income of Rs. 1,99,51,420/-. The case of the assessee was selected for scrutiny assessment and a notice under section 143(2) was issued and served upon the assessee. On scrutiny of the accounts, ld. Assessing Officer found that the assessee has made investments, which are reflected in the Balance-sheet. The total investments as on 31.03.2017 worked out by the ld. Assessing Officer are of Rs. 325.64 lakhs plus Rs.7 lakhs. He found that the assessee has suo motu made disallowance of Rs. 9,134/- under section 14A. In the opinion of the ld. Assessing Officer, this expenditure was not sufficient for looking after this huge investment. He proposed to disallow more amounts. In reply to the show-cause notice, the assessee has contended that disallowance cannot be made where no exempt income is earned. The ld. Assessing Officer has rejected this reply of the assessee by observing that the assessee has earned income in the shape of dividend, which was reinvested. Thereafter the ld. Assessing Officer has made a detailed analysis of Section 14A read ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITA Dated 05.12.2019]; (viii) The Peerless General Finance Investment Co Ltd. vs. DCIT (ITA Nos.937 938/KOL/2018- Kolkata ITAT Dated 24.04.2019. 8. We have duly considered the rival contentions and gone through the record carefully. In the paper book on pages no. 1 2, assessee has placed the details of dividend income earned by it. On page 2, dividend from short-term funds has been shown at Rs. 2,25,58,553/-. This dividend was reinvested. Similarly dividend from investment has been shown at Rs. 9,62,726/-. The claim of the assessee is that since it has been reinvesting the dividend received on short-term funds and, therefore, it was not required to incur much expenditure. The attribution of time by the staff and the management towards reinvestment of these dividends was not required much otherwise their attribution is much more towards other business activities where taxable income is being earned. This plea has been raised with an idea that there was no fault in its accounts and no specific finding has been recorded by the ld. Assessing Officer. We have duly gone through the record carefully. We find that specific details were not produced before both the autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g this issue for re-verification and redetermination of the fact whether tax is required to be computed under section 115BBE of the Income Tax Act. 10. With the assistance of ld. Representatives, we have gone through the record carefully. We have perused the computation of income and we find that ld. Assessing Officer has not identified any income where tax is to be computed under section 115BBE. A specific reference is being made to serial nos. 10 and 25 of the computation sheet. If that be the situation, then ld. Assessing Officer could not compute the tax under section 115BBE out of the disallowance under section 14A of the Income Tax Act. The ld. CIT(A) has no power to relegate any issue to the Assessing Officer. In other words, ld. CIT(A) has no power to remand an issue to the Assessing Officer. It has to decide the issue himself. A reference to this effect is being made to Section 251 of the Income Tax Act. Sub-clause (1)(a) has been amended by Finance Act, 2001 w.e.f. 1st June, 2001 and the power of the ld. CIT(Appeals) to set aside any issue has been omitted. Therefore, he cannot set aside any issue to the file of ld. Assessing Officer for redetermination. A perusal of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... others to charge (one) too much or in addition also additional tax . Thus the meaning of surcharge is to charge in addition or to subject to an additional or extra charge. If that meaning is applied to s, 2 of the Finance Act 1963 it would lead to the result that income tax and super tax were to be charged in four different ways or at four different rates which may be described as (i) the basic charge or rate (in part I of the First Schedule); (ii) Sur- charge; (iii) special surcharge and (iv) additional surcharge calculated in the manner provided in the Schedule. Read in this way the additional charges form a part of the income tax and super tax . The Hon ble Supreme Court, therefore, has decided the issue in favour of the revenue and held that surcharge and additional surcharge are part of the income tax. At this stage, it is pertinent to mention here that education cess was brought in for the first time by the Finance Act, 2004, wherein it was mentioned as under:- An additional surcharge, to be called the Education Cess to finance the Government s commitment to universalise quality basic education, is proposed to be levied at the rate of two per cent on the amo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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