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TMI Blog2013 (11) TMI 364X X X X Extracts X X X X X X X X Extracts X X X X ..... ion to income which does not form part of the total income, i.e., an income exempt under the Act – Reliance has been placed on the decision of ITAT Chennai Bench pronounced in the case of Tamil Nadu Silk Producers Federation Ltd. [2006 (4) TMI 229 - ITAT MADRAS-B] - Provisions of Section 14A have wrongly been invoked in this case – Decided against the Revenue. Rectification u/s 154, when the disallowance made u/s 14A – Held that:- Applicability of the provisions of Section 14A was a disputed issue hence not rectifiable u/s 154 of the IT Act. - ITA No.2630/Ahd/2011 & 182/Ahd/2013 - - - Dated:- 30-8-2013 - SHRI MUKUL Kr. SHRAWAT AND SHRI A.K. GARODIA, JJ. For the Appellant: Shri O.P. Batheja, Sr.D.R. For the Respondent: Shri S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of Rs.18,21,203/- was made. 3.1 When the matter was carried before the First Appellate Authority, the assessee has submitted as under, only relevant portion is reproduced below: The appellant is a co-operative Society and is eligible and claiming deduction of interest and dividend income u/s. 80)(2)(d). During the year under consideration the assessee claimed a deduction of Rs.82,44,575/- in respect of interest income u/s. 80P(2)(d). The AO also observed that the Assessee is paying an interest of Rs.7,64,45,713/- on the working capital facilities availed from various banks. Thus the learned AO disallowed Rs.18,21,203/- out of interest paid u/s. read with Rule 8D holding that the assessee is paying interest to Banks on the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ves another funds of Rs.20,43,06,246/- as against that the investment in shares, NSC, KVP were at Rs.8,17,57,010. On the basis of these figures, the vehement contention is that the assessee had sufficient own funds and, therefore, there was no reason to invoke the provisions of Section 14A of the IT Act. The other plank of argument before us is that the assessee has not claimed that any part of income was totally exempt from the Income Tax. But the fact was that the profit as per P L A/c was Rs.7,80,29,871/- against which the assessee has claimed deduction u/s 80IB and u/s. 80P(2)(d) of IT Act. The total assessable income was computed at Rs.4,00,68,881/-. The assessee has, therefore, argued before us that the provisions of Section 14A can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order of the CIT(A) allowing the deduction were upheld by the Tribunal; the entire activity of milk processing was carried out at the appellant s Plant only; the processed milk is sent to different locations where the bulk milk is packed in small pouches for selling it to the consumers; therefore, AO s observation that 50% of the processing of milk was given on job work to outsiders is factually incorrect; the allocation of expenditure between two units of the appellant namely Banas-I and Banas-II was done scientifically based on production capacity and actual production done for deduction is not warranted. I am declined to accept the contentions of the appellant. Following the appellate orders for the assessment years as mentioned above, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are reproduced below: The learned CIT (Appeals) has erred in confirming the additional disallowance of Rs.69,18,333/- u/s. 14A of the Income Tax in respect of interest income from deposits with Co-op. Bank. It is submitted that there is no mistake simplicitor on record in calculation of disallowance u/s. 14A read with Rule 8D. Various details of income and investments were called from the assessee and the learned CIT(A) has erred to appreciate and allow the same. Without prejudice to the above it is submitted that the learned CIT(A) erred in appreciating that the rectification could not be made of mistake apparent on records and where there are no two or more views are possible. It has been held by various Tribunals that disa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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