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TMI Blog2018 (7) TMI 582X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration vis-a-vis investments made by the assessee in the securities capable of yielding exempt income in context with books of accounts and audited financial statements of the asssessee for the year under consideration, we are restoring the issue to file of the AO - Decided in favour of revenue for statistical purposes - I.T.A. No.1289/Mum/2017 - - - Dated:- 6-7-2018 - SHRI SAKTIJIT DEY, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER For The Revenue : Shri Ram Tiwari For The Assessee : None ORDER PER RAMIT KOCHAR, Accountant Member This appeal, filed by the Revenue, being ITA No. 1289/Mum/2017, is directed against appellate order dated 23.11.2016 passed by learned Commissioner of Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w.r. 8D(2)(ii) and 8D(2)(iii) of Income-tax Rules, 1962 which led to the disallowance of ₹ 38,14,044/- u/s 14A r.w.r. 8D(2)(ii) and 8D(2)(iii) of the 1962 Rules (32,20,476/- on account of Rule 8D2(ii) and ₹ 4,93,568/- under Rule 8D2(iii) both read with Section 14A), as under:- 5.4 To determine the amount of disallowance under the provision of Rule 8D the following facts have been considered- 1. The assesses has incurred expenditure by way of interest amounting to ₹ 44,11,84,382/- during the concerned previous year (A) 2. The average of value of investment which is resulting into payment of dividend to the assessee company during the concerned previous year is ₹ 9,87,13,571/-(B) 3 The average ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the assessee in making such investments in the year of making investments. The AO rejected the contentions of the assessee which led to framing of an assessment order dated 20-03-2014 passed u/s 143(3) wherein additions in aggregate to the tune of ₹ 38,14,044/- were made u/s 14A r.w.r. 8D(2)(ii) and 8D(2)(iii) of the 1962 Rules. 5. The assessee being aggrieved by assessment order dated 20-03-2014 passed by the AO u/s 143(3) filed first appeal before learned CIT(A) which was decided against the assessee by learned CIT(A) by so far as additions to the tune of ₹ 4,93,568/- as were made by the AO by invoking Rule 8D(2)(iii) r.w.s. 14A . However so far as additions to the tune of ₹ 32,20,476/- as were made by the AO by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpt income to the extent of ₹ 4,93,568/- is upheld. Therefore, the disallowance to the extent of ₹ 4,93,568- is upheld as compared to the disallowance made by the AO at ₹ 38,14,044/-. The AO is directed accordingly. 6. Aggrieved by the appellate order dated 23.11.2016 passed by learned CIT(A), the Revenue has come in an appeal before the tribunal. None appeared for the assessee although application for adjournment was moved. The assessee has not filed any power of attorney/authorisation for appointment of counsel before the tribunal while in the adjournment application moved , the assessee without mentioning the name of authorised representative has just stated that the AR is hospitalised but no medical / hospitalisa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ow has stressed upon that own funds were more the investments made in the year in the securities capable of yielding exempt income as is emerging from material on record . However. No details of own funds including share capital plus Reserve and Surplus minus accumulated loss figures for the relevant year under consideration corresponding to previous year 2010-11 i.e. opening figure as at 01-04-2010 and also closing figures as on 31-03-2011 are available from records which is placed before us. The assessee has incurred losses of more than ₹ 68 cores in the impugned assessment year and the financial position vis-a-vis books of accounts as well audited financial statements for previous year 2010-11(AY 2011-12) are not available on recor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a-vis investments made by the assessee in the securities capable of yielding exempt income in context with books of accounts and audited financial statements of the asssessee for the year under consideration, we are restoring the issue to file of the AO for necessary verifications . Needless to say that the AO shall provide the assessee reasonable opportunity of being heard in accordance with principles of natural justice in accordance with law. The assessee is directed to produce before the AO all necessary evidences to support its contentions. We order accordingly. 8. The appeal of the Revenue is allowed for statistical purposes as indicated above. order pronounced in the open court on 06.07.2018 - - TaxTMI - TMITax - Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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