TMI Blog2012 (8) TMI 965X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome Tax Act, 1961 for the reason that though the Income Tax Appellate Tribunal in its order has not found itself in agreement with the Assessing Officer on the issue, it has not specifically given relief for this addition without appreciating the fact that once the order of the CIT(Appeals) and Assessing Officer is set aside and restored back to the file of the Assessing Officer with specific directions to make a fresh decision, addition disputed in the appeal does not subsist and in lieu thereof fresh decision has to be taken in accordance with the direction of the Tribunal contained in their order. 1.2 That having set aside and restoring the matter Income Tax Appellate Tribunal is not required to give independent directions to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le. 4. That the learned CIT(Appeals) has accordingly erred in confirming additional disallowance of Rs. 9,03,892/-. 5. That the above Grounds of Appeal are without prejudice to one another. 6. That the appellant craves permission to add, alter, amend, vary or delete one or more grounds of appeal on or before the date of hearing. 2. The facts of the case are that for the year under consideration, the assessee filed the return disclosing total income of ₹ 2,27,85,704/-. Original assessment was completed on 31st October, 2007 at the total income of ₹ 3,11,76,157/- vide order under Section 143(3). The assessee s main source of income was income from capital gains. The Assessing Officer disallowed the prop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Under these facts, it was held that the interest expenditure is allowable because the same were incurred for earning dividend income and it is not relevant as to whether dividend income was in fact earned or not during the relevant year. As per this judgment of Hon ble Apex Court, in the present case also, it is not relevant as to whether any dividend income was received by the assessee or not and what is the amount of dividend income. Any expenditure relatable to investment activity has to be construed as expenses incurred for earning dividend income and the same cannot be allowed as per section 14A but for working out the same, it is not proper to calculate the same on the basis of capital gain earned by the assessee because even if thes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer computed the assessee s income as under:- 8. With these remarks income of the assessee company is computed as under:- Loss : as per order u/s 143(3) (-) 3,87,10,858 Less : Relief allowed by CIT(A)-depreciation (-) 13,70,000 4,00,80,858 Less : Amt. already disallowed under Rule 8D (-) 3,83,580 Add : U/s 14A, as discussed above (+) 14,11,915 Revised loss (-) 3,90,52,523 Income/(Loss) from speculation business To be carried ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d be deleted. 6. The learned DR, on the other hand, relied upon the orders of authorities below. 7. We have carefully considered the arguments of both the sides and perused the material placed before us. We find that in the assessment order dated 28.12.2010, the Assessing Officer started the computation of income with the loss determined as per order under Section 143(3) dated 31.10.2007 i.e. (-) ₹ 3,87,10,858/-. From a perusal of the assessment order dated 31.10.2007, it is apparent that above working of loss of ₹ 3,87,10,858/- was after disallowance of proportionate expenses amounting to ₹ 45,73,144/- (3,20,259 + 42,52,885). The ITAT, in its order dated 17th December, 2009 passed in ITA No.1548/Del/2009, extract of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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