9911796707
TMI Blog2017 (10) TMI 1354X X X X Extracts X X X X X X X X Extracts X X X X ..... represented on behalf of the assessee. 3. As all the issues arise out of the common order of the Ld. CIT(A) and related to the same assessee and are having common issues, all the appeals are disposed off by this common order. 4. At the outset, it must be mentioned here that the assessee has filed multiple Paper Books wherein two Paper Books filed on 20. 09. 2017 and other Paper Books dated NIL containing pages 649, 467, 23. At the time of the hearing, none of the papers in the Paper Books have been referred to by the Ld. AR or the Ld. DR. Consequently, they are not taken on record. The issues in the appeals of the Revenue are in respect of the disallowance u/s. 14A r. w. r. 8D which has been deleted/reduced by the Ld. CIT(A), the issue in respect of the disallowance in respect of the NPAs, the issue in respect of the disallowance deleted by the Ld. CIT(A) in respect of the provision for expenses and the deletion of the disallowance made by the AO in respect of the delayed payments of the employee's contribution to ESI & PF. 5. In the assessee's appeal, there is only one issue which is against the confirmation by the Ld. CIT(A) of the disallowance made by the AO in respect of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on this issue. It was a submission that no evidence whatsoever had been produced before the AO or the Ld. CIT(A) nor before the Tribunal and consequently, the disallowance as made by the AO and as confirmed by the Ld. CIT(A) was liable to be upheld. It was a submission that no proof whatsoever that the amount had been offered to tax have been shown before any of the authorities nor copies of the agreements or the cancellation of the agreements been produced. It was a submission that only oral arguments have been placed without any supporting documents. In reply, Ld. AR submitted that he had no objection, if the issue is restored to the file of the AO for re-adjudication and to grant the assessee adequate opportunity to produce the evidence as called for. 6.2 We have considered the rival submissions. A perusal of the Assessment Order and also the order of the Ld. CIT(A) clearly shows that no evidence as called for by the AO to substantiate the case has been produced before the AO or before the Ld. CIT(A). Nor has it been produced even before us. Admittedly, if evidences had been produced or referred to, admittedly, natural justice would require, the issue to be restored to the file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad considered the interest debited to the P&L A/c not directly related to the particular income or receipt and under Rule 8D(2)(iii) in respect of the 0. 5% of the investments yielding exempted income, the AO had taken average of all the investments by the assessee. It was a submission that on appeal, the Ld. CIT(A) had held that term loans which had been taken from various banks and interest thereon could not be considered in so far as the interest have been, in fact, earned and paid out of the loans extended by the Appellant to the ultimate borrowers. It was a submission that consequently, the Ld. CIT(A) had excluded the interest amounts pertaining to the term loans for the purpose of computing the disallowance u/s. 14A r. w. r. 8D. It was a further submission that in respect of the Rule 8D(2)(iii), the Ld. CIT(A) had held that the investments made in the government securities had yielded taxable income and therefore they could not be considered as part of the computation under Rule 8D(2)(iii) of the Act. It was a submission that the Ld. CIT(A) had erred in giving relief to the assessee. It was a submission that the evidence produced by the assessee before the Ld. CIT(A) had not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the Ld. CIT(A) that the assessee had suo motu disallowed the provision for NPA in the year of its creation and reversed, the provision for NPA at the time of write off or recovery. It was a submission before the Ld. CIT(A) that the assessee had produced the evidences to show that the provision for NPA had been reversed back for the AYs 2009-10 & 2010-11 and the reversed amounts had been disallowed for the AYs 2011-12 & 2012-13. It was a submission that consequently the disallowance had been deleted by the Ld. CIT(A). It was a submission that the order of the Ld. CIT(A) was liable to be reversed. 8.1 In reply, the Ld. AR submitted that the issue may be restored to the file of the AO for re-verification and that the evidence produced before the Ld. CIT(A) would be produced before the AO. 8.2 We have considered the rival submissions. As it is noticed that the assessee has produced fresh evidence before the Ld. CIT(A) who has considered the same for deleting the disallowance made by the AO without granting the AO adequate opportunity to substantiate his case, the issue is restored to the file of the AO for re-adjudication after granting the assessee adequate opportunity to produce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h Court and consequently the same was liable to be upheld. 10.2 We have considered the rival submissions. As it is noticed that the Ld. CIT(A) has followed the decision of the Hon'ble Jurisdictional High Court in the case of Industrial Security & Intelligence India Pvt. Ltd. , we find no reason to interfere in the order of the Ld. CIT(A) on this issue. Consequently, the findings of the Ld. CIT(A) on this issue stands confirmed. ITA No. 488/Mds/2017 for the AY 2010-11: 11. In the Revenue's appeal, the only issue is in regard to the disallowance u/s. 14A r. w. r. 8D. As we have already restored the issue to the file of the AO for re-adjudication, the appeal of the Revenue stands partly allowed for statistical purposes. ITA No. 489/Mds/2017 for the AY 2011-12: 12. The issues in this appeal are - Disallowance u/s. 14A r. w. r. 8D, Reversal of provision for NPA, Disallowance of provisions for expenses and Delayed payment of employee's contribution towards PF & ESI. 13. As the issues in respect of u/s. 14A r. w. r. 8D, reversal of the provisions for NPA and the disallowance of the provisions for expenses has been restored to the file of the AO for re-adjudication and in respect o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
