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TMI Blog2014 (4) TMI 779X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer on account of difference between the income appearing in the TDS certificates and income offered for taxation. Briefly stated the facts of this ground as recorded in para 3 of the assessment order are that the assessee earned income from contract sales and the product sales. In respect of contract sales, the assessee claimed that there was advance receipt of Rs. 10.75 crore, which was considered as liability in its balance sheet. On being called upon to reconcile the claim as per TDS certificates with the related income in the Profit and loss account, the assessee stated that the contract sales shown in the P & L account were more than the amount credited as per TDS certificates. As regards the advance of Rs. 10.75 crore r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue's appeal by holding that no substantial question of law arises for consideration from the order of the Tribunal on this issue. A copy of the judgment is available on page 110 of the paper book. It can be seen from the record that the amount of Rs.29.08 crore which was shown as liability as at the end of the preceding year has been accounted for as income for the current year. Similar position was stated before the authorities below qua the current addition of Rs.10.75 crore. Such contention has not been refuted by the AO. It, therefore, becomes patent that the addition made for the instant year, similar to the one made for the preceding year which came to be finally deleted by the Hon'ble High Court, cannot survive. 5. The ld. Depar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue was restored for a fresh decision in the light of the judgment of the Hon'ble Delhi High Court in the case of CIT Vs Mahavir Aluminum Ltd. (2008) 297 ITR 77 (Delhi). A copy of such order passed by the Tribunal is available in the paper book. No distinguishing features for the current year have been pointed out by the ld. DR. Respectfully following the precedent, we set aside the impugned order on this score and remit the matter to the file of A.O for deciding this issue afresh in accordance with the afore noted judgment of the Hon'ble Delhi High Court in Mahavir Aluminum Ltd. (supra). 7. The last effective ground in the Revenue's appeal is against the deletion of disallowance of Rs. 1,57,152/- made on account of excess claim of deprecia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sustenance of such disallowance. 10. Having heard the rival submissions and perused the relevant material on record, we observe that the assessment year under consideration is 2009-10. As per the judgment of the Hon'ble jurisdictional High Court in Maxopp Investment Ltd. Vs CIT (2012) 347 ITR 272 (Delhi), the disallowance u/s 14A is required to be made as per Rule 8D from assessment year 2009-10. As such, the contention urged on behalf of the assessee that the disallowance be made on some reasonable basis and not as per rule 8D is devoid of merits. The further contention of the ld. AR that the exempt income was a meager sum and hence such a substantial disallowance u/s 14A was not called for, also does not stand in the light of the Special ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me then the presumption would be that such investments were financed out of the interest free funds available at the assessee's disposal. Once this is the case, there can be no question of attributing interest claimed in the profit and loss account to such investments. If there is no interest attributable to the investments bearing exempt income, there can be no question of any disallowance of interest u/s 14A. The Hon'ble Gujarat High Court in CIT Vs Suzlon Energy Ltd. (2013) 354 ITR 630 (Guj.) has held to this extent by laying down that no disallowance of interest u/s 14A can be made if own capital is more than the investment fetching exempt income. Since, necessary details in this regard are not properly forthcoming, we deem it appropria ..... X X X X Extracts X X X X X X X X Extracts X X X X
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