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TMI Blog2017 (9) TMI 654X X X X Extracts X X X X X X X X Extracts X X X X ..... Confirmation of disallowance of interest - Held That:- The assessee has shown the interest income on FDs. The assessee produced the TDS certificates in which he has received the interest to aggregated to the tune of ₹ 2,60,165/-. The difference to the tune of ₹ 8,245/- was added to the income. Nothing in support is produced before us. The plea of the assessee’s that the income was offered in the earlier year but there is no evidence in this regard therefore we uphold the finding of the CIT(A) on this issue.- Decided against the assessee. - I.T.A. Nos.2273/M/2012, 7254/M/2012, 6779/M/2013 And 6779/M/2014 - - - Dated:- 31-8-2017 - SHRI B. R. BASKARAN, AM AND SHRI AMARJIT SINGH, JM For The Assessee : Shri Nishant Thakkar For The Department : Shri Prashant J. Thakkar ORDER PER AMARJIT SINGH, JM: The assessee has filed the above mentioned appeals against the different order passed by the Commissioner of Income Tax (Appeals)-17, Mumbai [hereinafter referred to as the CIT(A) ] relevant to the assessment years2008-09,2009-10, 2010-11 2011-12. All these appeals are being taken up together for adjudication being the parties are the same and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd determining the disallowance of ₹ 38,36,775/- against dividend income received for ₹ 631,579 which is currently exempt from tax. 3.2 The appellant submits that as it has not incurred any expenditure to earn dividend income of ₹ 631,579 and no disallowance u/s 14A of the Act is warranted. 3.3 The appellant prays that the assessing officer be directed to delete the disallowance computed on application of section 14A of the Act Your appellant crave leave to alter, amend omit, delete, withdraw or substitute the above grounds of appeal at any time before or at the time of hearing as they may be advised to do so. 4. The brief facts of the case are that the assessee filed its return of income on 29.09.2008 declaring total income to the tune of ₹ 16,94,900/-. The total income comprised of income of ₹ 40,62,396/- under the head (Income from other sources) and a loss to the tune of ₹ 23,67,500/- under the head of profit and gains of Business or Profession. A dividend of ₹ 6,31,579/- was also claimed as exempt u/s 19(34) of the Act. The assessee Also claimed business loss to the tune of ₹ 12,24,139/- suffered in preced ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liable to be allowed in view of the law settled in (1993) 201 ITR 498 Calcutta High Court title as CIT(A) karanpura Collieries Ltd. (1992) 62 Taxman.com 285 Calcutta, CIT Vs. Ganga Properties Ltd. On the other hand, the Ld. Representative of the assessee has argued that the assessee was not doing any business, therefore, the expenses were rightly disallowed by the CIT(A) therefore, this issue is required to be decided accordingly in favour of the revenue. We have heard the argument and advanced by the Ld. Representative of the parties and perused the record. We observed that the assessee company may not carry on business but is in existence. The assessee company was deriving the income from other sources. The name of the company was not struck off by the registrar of companies. The company has not been dissolved. Since company is in operation, therefore, the company have to maintain the status as company and to discharge certain legal obligation and for that purpose the expenses are required to be incurred. The assessee company has shown the expenditure to the P L Account. The said expenditure is liable to be allowed in view of the law settled in (1993) 201 ITR 498 Calcutta High ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12. However the figure is different. The assessee has raised the following grounds:- 1. Ground No 1: Disallowance under Section 14A of the Income Tax Act, 1961('the Act') 1.1 The Commissioner of Income-tax Appeals)-17 of the Cl1(A)'), Mumbai on the cis and circumstances of the case erred in upholding the application of section 14A of the Act and determining (he disallowance of ₹ 3240176 against dividend income of ₹ 30,40,178/- which is currently exempt from tax. 1.2 The appellant submits that as it has not incurred any expenditure to earn dividend income of ₹ 30,87,694 and no disallowance under section 144 of tile Act is warranted, and thus rue provisions of rule 8D of the Income-tax Rules 1962 (the Rules) also cannot he invoked. 1.3 The appellant prays that the assessing officer AD.) be directed to delete the disallowance computed on application of under section 14A of the Act. 2. Ground No. 2: without prejudice to Ground no. 1, disallowance of custodian fees not to be considered for the purpose 01 rule 8D of the Rules. 2.1 The CIT(A), on the tact, and circumstances of the case erred in upholding the disallowance of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case, erred in upholding the addition of the interest income of ₹ 8,245(being the difference between TDS certificate and the amount offered by the appellant to tax), since the difference relates to the reversal of interest as a result of a pre-maturity of the fixed deposit. 6.2 The appellant prays that the AO be directed to give appropriate direction in this matter to delete the addition of ₹ 8,245/- 7. Ground No. 7: Denial of set-off of business loss incurred against income from other sources earned during the same assessment yea\r 7.1 The CIT(A) on the facts and circumstances of the case erred in upholding the AO view of not allowing set-off of business loss against the income from other sources earned during the same assessment year. 7.2 As a consequence to the Grounds of appeal, the appellant submits that it should be allowed to set off the business loss of ₹ 33.47,415/- as against income from other sources of ₹ 2,51.920/- as claimed in the return of income and the balance to be carried forward. 7.3 The appellant t prays for due relief. ISSUE NO. 1 TO 5:- 8. Regarding the said issues raised in this appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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