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TMI Blog2018 (6) TMI 283X X X X Extracts X X X X X X X X Extracts X X X X ..... /2017 - - - Dated:- 31-5-2018 - SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER For The Appellant : Shri V. K. Singh, Sr.D.R. For The Respondent : Shri D. K. Parikh, A.R. ORDER PER WASEEM AHMED, ACCOUNTANT MEMBER: The captioned appeal has been filed at the instance of the Revenue against the appellate order of the Commissioner of Income Tax(Appeals)-1, Ahmedabad [CIT(A) in short] vide appeal no.CIT(A)- 1/DCIT, Circle-1(1)(2)/290/2015-16 dated 27/10/2016 arising in the assessment order passed under s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act ) dated 29/01/2016 relevant to Assessment Year (AY) 2013-14. 2. The grounds raised by the Revenue per its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laim inter alia relied on the order of this Hon ble Tribunal, Ahmedabad in the case of Chudgar Ranchhodlal Jethalal vs. DCIT in ITA No.245/Ahd/2013. However, the AO was of the view, disallowances should be made in pursuance to the provision of Section 14A r.w.r. 8D of the Income Tax Rules and same can exceed the amount of dividend income. Accordingly, the AO invoked the provision of Rule 8D of the Income Tax Rule and worked out the disallowance as under: Sr. No. Particulars Amounts 1. Direct Expenses Nil 2. Interest Expenses 68,52,853/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8D is required to be made. He further observed that appellant must have incurred administrative expenditure which is attributable to investment portfolio. He further retted upon decision of Delhi special bench in case of Cheminvest Ltd. and observed that for the purpose of disallowance u/s 14A, there is no requirement that actual income need to be earned. Therefore, invoking the provisions of Section 14A, the AO After considering the assessee's disallowance of ₹ 29,90,000/- made in the statement of income, the total disallowance of ₹ 65,54,398/- [9544398 - 2990000] is disallowed u/s. 14A of the Act. During the course of appellant proceedings, the AR of the appellant vehemently argued that the disallowance u/s 14A shou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n that the facts during the year is identical to the previous year in the case of disallowance under sect/on 14A r. w.r 8D of the I.T. Act, the A.O. is directed to delete the addition so made of ₹ 92,52,234/-. This ground of appeal is allowed. Being aggrieved by the order of the Ld. CIT(A) Revenue is in second appeal before us. Ld. DR and AR before us relied on the order of the authorities below as favorable to them. 6. We have heard the rival contentions and perused the materials available on record. At the outset, we find that the issue on hand has already been decided by this Tribunal in favour of the assessee in the case of Chudgar Ranchodlal Jethalal (supra) , wherein, it was held as under: 7. We have heard th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any years and the assessee has never claimed this kind of expenses in earlier years. He further submitted that the assessee has not given any evidence in support of its claim that there was loss of weight. 3.2. In rejoinder, the ld.counsel for the assessee submitted that the evidences were placed on record; namely, the ledger account of weight shortage expenses, the debit notes raised by the concerned parties. The ld.counsel for the assessee submitted that merely because the assessee has claimed this kind of expenditure for the first time and it cannot be the sole ground for making disallowance. 4. We have heard the rival submissions, perused the material available on record and gone through the orders of the authorities below. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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