9911796707
TMI Blog2013 (11) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... ls) erred in confirming the A.O.'s action of invoking provisions of Section 14A of the Income Tax Act, 1961 r.w. Rule 8D of I.T. Rules, 1962 and thereby erred in directing the A.O. to rework the disallowance of Rs. xxxxxxxx under Rule 8D(2)(ii) of I.T. Rules, 1962; (ii) The reasons given by the C.I.T. (Appeals) erred in confirming the A.O.'s action of invoking provisions of Section 14A of the Income Tax Act, 1961 r.w. Rule 8D of I.T. Rules, 1962 and thereby erred in directing the A.O., to rework the disallowance of Rs. xxxxxxxx- under Rule 8D (2)(ii) of I.T. Rules, 1962 is wrong, insufficient and contrary to facts and evidence on record; (iii) In the facts and circumstances of the case, the learned C.I.T. (Appeals) ought to have r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the minor. Now, coming to the disallowance of Rs. 4,48,753, being attributable to ½ % of the average investments, it is noticed that before the Assessing Officer, the assessee himself submitted that historical value of the shares should be taken for the purpose of disallowance under section 14A, which has been accepted by the Assessing Officer. The learned Commissioner (Appeals) has also given a categorical finding that the assessee has failed to prove that no interest bearing funds was used for acquisition of shares which remains un-rebutted at this stage also. If the assessee is unable to show that the shares have been acquired out of surplus funds or non- interest bearing funds, the provisions of rule 8D has to be applied and d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pointed out the addition has been made on routine basis, as no incriminating document had been found in the course of search and seizure operations. The assessee, has therefore, raised additional legal ground, in addition to the grounds, which are identical and common in the other two appeals. To pursue the issue on legal grounds, the assessee has raised additional ground, which reads as under. Whether, in the facts and in law, the scope of assessment under section 153A encompasses additions, not based on any incriminating material found during the course of search? 6. At the time hearing, the AR pointed out that the proceedings in the impugned assessment year had been finalized long before the search took place and neither any proceedin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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