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TMI Blog2016 (11) TMI 360X X X X Extracts X X X X X X X X Extracts X X X X ..... rospectively, which is not allowed as per Rule as well as per the judicial pronouncements of various High Courts. 2. That on the facts and circumstances of the case the Ld. CIT(A)-XVIII grossly erred in confirming the addition of Rs. 3,13,151/- by applying the provisions of Sec 14A read with rule 8D." 2. Brief facts of the case are as under: 2.1 The assessee filed its return of income for the year under consideration on 30.10.2005 at a brook profit of Rs. 34,82,212/- u/s 115JB of the Act. The return was processed u/s 143(1) and also assessed u/s 143(3) of the Act at a loss of Rs. 1,06,94,499/-. 2.2 Subsequently, Ld. A.O. issued a notice u/s 148 of the Action 30.03.2012 after recording the reasons for reopening as under: "the assessee has claimed exempt income u/s 10(1) r.w.s 2(1) to the tune of Rs. 2,11,20,946/-. The assessee has shown in the P& L account dividend received of Rs. 3.90 lacs. Further, sales turnover has been shown at Rs. 136.85 Crores against which expenditure or Rs. 132.77 Crs has been claimed. The profit before tax is shown at Rs. 2.39 Crs. Since, the assessee has earned exempt income in the form dividend and agricultural income and has not disallowed any ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ary for his assessment in the A Y 2005-06. Hence the same is to be brought to tax under section 147 of the income Tax Act. Sanction for issue of notice u/s 148 as prescribed u/s 151, may kindly be accorded." 2.3 Pursuant to the reasons being intimated to the assessee, reply was filed on 2012.2012 wherein, it has been submitted that there has been no failure on the part of the assessee in disclosing full and true material facts and that no disallowance could be made u/s 14A read with Rule 8D. 2.4 Ld. A.O. disallowed 0.5% of the proportionate expenditure and the proportionate value of administrative expenses. Aggrieved by the order of Ld. A.O., assessee preferred an appeal before Ld. CIT(A). 2.5 Ld. CIT(A) confirmed the action of reopening and upheld the additions made by L. A.O. Aggrieved by the order of Ld. CIT(A), assessee is in appeal before us now. 3. Ld. A.R. submitted that Ld. CIT(A) has not discussed the issue relating to disallowance u/s 14A made by the A.O., vis-à-vis the decision of this Tribunal for the Assessment Year 2008-09 (supra) in assessee's own case. He also submitted that the Assessing Officer has not applied his mind before initiation of reassessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 007- 08): 6. The present appeal arises out of the order dated 16.08.2013 passed by Ld. CIT(A) for the Assessment Year 2007-08 on the following grounds of appeal: "1. That on the fact and circumstances of the case (i) the impugned order is not only bad in law and nature but it also whimsical hence it is liable to be deleted. (ii) The Ld.CIT(A)-XVIII grossly erred in allowing the reopening of assessment u/s 148 which has already been assessed u/s 143(3) of the Act. Invoking the provisions of section 14A r.w.r 80 retrospectively which is not allowed as per Rule as well as per the judicial pronouncements of various High Courts. 2. That on the facts and circumstances of the case the Ld. CIT(A)-XVIII grossly erred in confirming the addition of Rs. 4,84,688/- by applying the provisions of Sec 14A read with rule 8D." 6.1 At the outset, Ld. A.R. submitted that ground No.1 relating to validity of reopening of the assessment, is not pressed. Therefore, to deal with the merits, the brief facts of the case are as under: 6.3 The assessee had filed its return of income on 30.10.2007 declaring total income of Rs. 48,28,710/- and book profit u/s 115JB of the Act to the tune of Rs. 2,21, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . These cross appeals have been filed by the assessee and the Revenue against the order dated 29.08,.2013 passed by Ld. CIT(A) XVIII, New Delhi for the Assessment Year 2010-11 on the following grounds of appeal: I.T.A.No. 5729/Del/2013 (assessee's appeal): "1. The Ld.CIT(A)-XVIII has erred in confirming the addition of Rs. 1,87,337/- on account of foreign travelling expenses, without appreciating the facts & circumstances of the case. 2. The Ld.CIT(A)-XVIII has erred in confirming the addition of Rs. 96,000/- on account of payment to related person u/s 40A(2)(b) of the Income Tax Act,1961, without appreciating the facts & circumstances of payments." I.T.A.No. 6102/Del/2013(Revenue's appeal): "1. On the facts & in the circumstances of the case, the Ld. CIT(A) has erred in restricting the disallowance made under the head of 'foreign travelling expenses' to Rs. 1,87,337/- ignoring the fact that these expenses contain the expenses of personal nature. 2. On the facts & in the circumstances of the case, the Ld. CIT(A) has erred in restricting the disallowance on account of excessive payment to Rs. 96,000/- failing to appreciate that the burden of proving the payment as g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... way of holiday/leisure trip, and no such expenses have been incurred exclusively towards business purposes as required u/s 37(1) of the Act. 7.6 On the contrary, Ld. A.R. submitted that before Ld. CIT(A), on 02.04.2012, the assessee had furnished full details of foreign travel undertaken by the directors and their relatives including destination, purpose, date of ravel along with relevant documentation to establish the business purposes. Copies of bills relating to these expenses were also furnished. He submitted that qualification and designation along with job profile of the directors and the relatives of the directors, who undertook foreign travel were analyzed by Ld. CIT(A), are as under: Name of Directors Qualification Designation Job Profile remarks Sh. K. K. Rathi B.Sc. Managing Director Legal & Administration - Sh. Anupam Rathi B.Tech. Whole time Director Operations & Purchase/sale - Sh. Anurag Rathi B.Com. Director Production - Smt. Pushpa Rathi Matriculate Administrator Looking after administration of company W/o Shro K. K. Rathi Smt. Parneeta Rathi B.Sc. Operations Assistant Operation Assistant W/o Sjhri Anupam Rathi Smt. Nandita R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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