9911796707
TMI Blog2018 (5) TMI 1546X X X X Extracts X X X X X X X X Extracts X X X X ..... he Asst Year 2008-09. 2. The first issue to be decided in this appeal is as to whether the Ld. CIT(A) was justified in confirming the disallowance u/s 14A of the Act, in the facts and circumstances of the case. 3. The brief facts of this issue is that the assessee is engaged in the business of manufacturing and designing of engineering goods. The assessee had earned dividend income of Rs. 66,666/-. The assessee has not disallowed any expenses u/s 14A of the Act. The ld. AO worked out the disallowance under third limb of Rule 8D(2) of the Rules at Rs. 51,833/-. However he proceeded to disallow the sum of Rs. 1,51,751/- u/s 14A of the Act while completing the assessment under both under normal provisions of the Act as well as under computat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the ld. AO while making the computation of income had erroneously disallowed Rs. 1,51,751/- instead of 51,833/-. We find that the Ld. CIT(A) also had grossly erred by giving a wrong factual finding in this regard. Accordingly, we direct the ld. AO to rectify the same. We find that the assessee had received dividend income of Rs. 66,666/- only from Mcleod Russel India Ltd. and accordingly any disallowance of expenses u/s 14A of the Act towards administrative expenses could be made only with respect to such investments. Respectfully following the co-ordinate Bench decision of this Tribunal rendered in the case of REI Agro Ltd. reported in 144 ITD 141, we direct the ld. AO to make disallowance under third limb of Rule 8D(2) of the Rules b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o logic in the ld. AO reducing Rs. 5,94,38,000/-taking figure of accumulated depreciation from the fixed assets schedule and reducing the same while completing the books profit u/s 115JB of the Act. From the above table, it may appear that the assessee has rightly deducted Rs. 6,31,53,460/- representing unabsorbed depreciation loss as per books of accounts. We hold that this figure requires factual verification by the ld AO. Hence in the interest of justice and fairplay, we deem it fit and appropriate, to remand this issue to the file of ld AO for factual verification of the aforesaid figures and determine the amount of unabsorbed depreciation loss as per books of accounts to be reduced while computing the book profits u/s 115JB of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
