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TMI Blog2010 (11) TMI 520X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment order, he has mentioned that proportionate disallowance has to be claimed on the basis of administrative and other expenses other than manufacturing expenses incurred during the year - Appeal is allowed for statistical purpose Regarding deduction u/s 80HHC - in assessee' s own case and in absence of any contrary material brought to our notice - Held that: not to exclude the lease rentals and sale of scrap from profit of the business while computing relief u/s 80HHC - Appeal is allowed for statistical purpose - ITA No. 1372/Mum/2007 - - - Dated:- 19-11-2010 - D. Manmohan, R.K. Panda, JJ. Arvind Sonde for the Appellant Narendra Singh, CIT-DR for the Respondent ORDER R.K. Panda: This appeal filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring to the copy of the consolidated order of the Tribunal in assessee's own case for Assessment Years 1996-97, 1997-98, 1998-99, 2000-01 and 2001-02 submitted that the Tribunal in the preceding assessment years as well as subsequent years has decided the issue in favour of the assessee. Therefore, the matter may be sent back to the file of the Assessing Officer with the direction to consider the order of the Tribunal and pass necessary order after making necessary adjustments as there is some calculation error in the order of the Assessing Officer 5.1 The ld DR, on the other hand fairly conceded that the Tribunal has decided the issue in favour of the assessee and he has no objection, if the issue is restored to the file of the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee. According to him, the expenses incurred by the assessee company, which has facilitated in making the investment in shares cannot be ruled out. Relying on the decision of the Tribunal in the case of M/s Gherzi Eastern Ltd vide ITA No.6562/Bom/94, he observed that the assessee company has failed to bring anything on record to substantiate their claim of not incurring any expenditure in earning the dividend income. The Assessing Officer disallowed an amount of Rs.4,92,284/- u/s 14A of the I T Act. While doing so, he noted that the total receipt in the year is Rs.753.92 crores out of which the dividend income is Rs.37.213 lacs, which is 0.049%. Therefore, the proportionate disallowance of 0.049% of the total administrative and oth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the scheme of the Act and provisos of sec. 57 thereof. 9.1 The ld DR on the other hand submitted that the matter may be set aside to the file of the Assessing Officer for fresh adjudication in the light of the decision of the jurisdictional High Court in the case of Godrej and Boyce Mfg P Ltd reported in 328 ITR 81. 10. We have considered the rival submissions made by both the parties, perused the orders of the authorities below and the paper book filed on behalf of the assessee. We have also considered the decisions relied upon by both the parties. There is no dispute to the fact that in absence of furnishing of details by the assessee, the Assessing Officer disallowed an amount of Rs.4,82,284/- being proportionate expenses at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mputing the deduction u/s 80HHC of the Act." 11.1 Facts of the case, in brief, are that the assessee company has claimed an amount of Rs.3,06,90,211 as deduction u/s 80HHC. During the course of assessment proceedings, the Assessing Officer asked the assessee to show cause as to why the income received on account of sale of scrap and lease rentals should not be considered for disallowance under clause (baa) of Explanation to sec. 80HHC. Rejecting the explanation of the assessee, the Assessing Officer excluded the sale of scrap and lease rentals income for calculating deduction u/s 80HHC. 11.2 In appeal, the CIT(A) following his orders for Assessment Years 2000-01 and 2001-02 rejected the ground raised by the assessee and upheld the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 at para 8 of the order has allowed the claim of the assessee by holding as under: "Coming to the issue of lease rentals, we find that the Tribunal in the assesse's own case for the Assessment Year 2001-02 in ITA No.8923/Mum/2004, order dated 31st May, 2010, J Bench, allowed the claim of the assessee. Respectfully following the same, we direct the Assessing Officer, not to exclude lease rentals from profits of business, while computing relief u/s 80HHC. Similarly, in the case of scrap sales, the issue is covered in favour of the assessee by the order of the Tribunal in its own case, for the asst year 2001-02. Respectfully following the coordinate Bench order, we direct the Assessing Officer not to exclude proceeds from sale of scrap fr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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