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TMI Blog2017 (8) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... icer and the Commissioner of Income-tax (Appeals) was upheld on this count. It has been recorded by the Tribunal that the disallowance had been computed on a reasonable basis and the same did not show any irrational or irrelevant considerations. Thus, the Tribunal correctly did not interfere with the determination of the amount as made by the Assessing Officer and the Commissioner of Income-tax (Appeals). Deduction under section 80G - Donation by way of clothes towards Prime Minister's Relief Fund for Jammu and Kashmir Earthquake Relief - Held that:- Learned counsel for the assessee was unable to show in the light of Explanation 5 to section 80G which was inserted by the Finance Act 1976, effective from April 1, 1976 that the deduction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s were incurred by the appellant for earning the said dividend income ? (b) Whether on the facts and circumstances of the case, the Tribunal was legally correct in holding that the estimation made by the Assessing Officer of the expenditure such as printing and stationery, postage and telegraph expenses and auditor's remuneration have any nexus to earn the dividend income ? (c) Whether on the facts and in the circumstances of the case, the Appellate Tribunal was justified in law in holding that the sum of ₹ 12,20,670 being the value of 8860 pieces sent to Prime Minister's Relief Fund for earthquake in Jammu and Kashmir was eligible for deduction under section 37 of the Act 1961 ? (d) Whether on the facts and cir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal in the case of M/s. Nahar Industrial Enterprises Limited for the assessment year 1997-98. In first appeal before the Commissioner of Income-tax (Appeals) (CIT(A)), the order passed by the Assessing Officer was sustained. The Tribunal in its order dated September 23, 2009 in the second appeal filed by the assessee also sustained the disallowance made by the Assessing Officer on estimate basis and without any nexus of expenditure vis-a-vis dividend income earned by the appellant. Further, the assessee claimed deduction of ₹ 12,20,670 under section 37(1) of the Act on account of contribution made by the assessee of 8860 pieces of woollen hosiery garments towards the Prime Minister's Relief Fund. During the assessment pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring the totality of facts and circumstances had disallowed ₹ 1,35,270 under section 14A of the Act following the decision of the Tribunal in the case of Nahar Industrial Enterprises Limited for the assessment year 1997-98 on similar grounds. On appeal by the assessee, the disallowance of ₹ 1,35,270 made by the Assessing Officer under section 14A of the Act was upheld. Further appeal carried by the assessee to the Tribunal was rejected and order of the Assessing Officer and the Commissioner of Income-tax (Appeals) was upheld on this count. It has been recorded by the Tribunal that the disallowance had been computed on a reasonable basis and the same did not show any irrational or irrelevant considerations. Thus, the Tribunal did ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f section 14A of the Act. The hon'ble Income-tax Appellate Tribunal has therefore not held that these expenses had no nexus vis-a-vis earning of dividend income. Therefore, the Additional Commissioner of Income-tax was fully justified in considering even the expenses under these two heads of computing proportionate disallowance under section 14A of the Act. In view of the above discussion, the disallowance of ₹ 1,35,270 made by the Assessing Officer under the provisions of section 14A of the Act is upheld. This ground of appeal is therefore dismissed.' 7. We have considered the discussion made by the Commissioner of Income-tax (Appeals). Ostensibly, the exercise of ascertaining expenditure in relation to an exempt income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubstantial question of law arises. 5. Examining question (c), the same is covered by the judgment of this court against the assessee in I. T. A. No. 69 of 2008 (Nahar Spinning Mills Limited v. CIT) decided on July 28, 2014. 6. Adverting to question (d), the assessee had made donation by way of clothes towards Prime Minister's Relief Fund for Jammu and Kashmir Earthquake Relief. The deduction under section 80G of the Act was declined by the Tribunal. Learned counsel for the assessee was unable to show in the light of Explanation 5 to section 80G which was inserted by the Finance Act 1976, effective from April 1, 1976 that the deduction was admissible. Learned counsel for the assessee argued that sum and substance of the transaction ..... X X X X Extracts X X X X X X X X Extracts X X X X
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