2016 (3) TMI 1284

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..... guments that are listed at para 4.2 at pg No.3 of the order of the FAA. We find that the FAA has not dealt with the submissions made by the assessee. We are of the opinion that the matter needs further verification and investigation - thus rendering back the issue to the file of AO for fresh adjudication - Decided partly in favour of assessee for statistical purposes.
S/Sh.Rajendra, Accountant Member and Amit Shukla, Judicial Member Revenue by: Shri M-Murali-DR Order u/s.254(1)of the Income- tax Act,1961(Act) PER RAJENDRA, AM Challenging the order dated 06.03.2013 of CIT(A)-12,Mumbai,the assessee had filed the present appeal. Assessee-company, engaged in the business of Trading and Investment, filed its return of income on 24.09. .....

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..... ed any expenditure in relation to the exempt income except STT of ₹ 1.41 lakhs, that investment was made by the assessee in acquiring the controlling interest in the group companies, that dividend income was incidental to holding of shares, that there was no live nexus between the exempt income and expenditure incurred, that the AO had not given any finding that any other expenditure was incurred for earning the exempt income, that the assessee had relied upon a number of cases but the AO had not offered any comments on that, that during the year under appeal it had incurred expenses-other than the finance and STT expenses- only of ₹ 4.14 lakhs, that the disallowance made by the AO was more than the actual expenditure incurred b .....

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..... that disallowance should be made in a routine manner without considering the basic fact i.e. amount of expenditure incurred by the assessee. The assessee had advanced certain arguments that are listed at para 4.2 at pg No.3 of the order of the FAA. We find that the FAA has not dealt with the submissions made by the assessee. In these circumstances, we are of the opinion that the matter needs further verification and investigation. Therefore, in the interest of justice we are rendering back the issue to the file of AO for fresh adjudication who would decide the issue after considering the latest judicial pronouncement of the Hon'ble Jurisdictional High Court and the Hon'ble Delhi High Court. First effective ground is decided in favour o .....

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