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TMI Blog2019 (4) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, proceeding to dispose them off by this consolidated order for the sake of convenience. ITA No.710/PUN/2017 - Mr. Rajendra S. Goel - A.Y. 2010-11: 2. The only issue raised in this appeal is against the confirmation of disallowance u/s.14A of the Income-tax Act, 1961 (hereinafter also called 'the Act'). 3. Briefly stated, the facts of the case are that the assessee earned certain exempt income from investments in shares and mutual funds and also partnership firms. No disallowance was offered by the assessee u/s.14A read with rule 8D. The Assessing Officer (AO), after recording satisfaction, proceeded to determine the amount of disallowance at Rs. 2,13,657/-, consisting of Rs. 62,468/- under rule 8D(2)(ii) and Rs. 1,51,189/- und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d ordered to make enhancement by the sum of Rs. 38,602/- which is not justifiable. We, therefore, order to delete the enhancement made by the ld. CIT(A) to this extent. 5. Now coming back to the details of other expenses, we find that the assessee claimed to have incurred Rs. 7,72,505/- exclusively towards taxable income. Out of such expenses, three items of expenses, viz., professional charges for project at Parvati amounting to Rs. 5,51,500/- ; stamp duty, stamp paper and miscellaneous expenses of Rs. 86,893/-; and expenses relating to property rented out by the assessee at Rs. 50,872/-, have no connection with the exempt income and hence cannot be considered for disallowance u/s 14A. The remaining item of expense in this list is a sum o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f income. Similar to his action for the preceding year, the ld. CIT(A) not only sustained the disallowance as made by the AO but also enhanced the disallowance u/s 14A by such an amount of Rs. 13,297/-. The assessee is aggrieved by the confirmation as well as enhancement of the addition. 8. Having heard both the sides and gone through the relevant material on record, we find that this issue is similar to that of A.Y. 2010-11 which has been determined hereinabove. It is observed that out of the expenses claimed to have been incurred by the assessee exclusively for taxable income, there is an item of common expense, which is Professional fee of Rs. 58,521/-. Following our above decision for earlier year, we direct to delete the enhancement o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the outset that the dispute in the extant appeal is only regarding the calculation of interest and not for the duration for which the interest is so chargeable. Section 234A though provides certain amounts of taxes etc. under sub-section (1) to be reduced from the amount of tax on total income determined under regular assessment for the purpose of calculation of interest u/s 234A, but there is no specific mention for the exclusion of the amount of self-assessment tax. It is worthwhile to mention that the Hon'ble Supreme Court in CIT Vs. Pranoy Roy and Another (2009) 309 ITR 239 (SC) has dealt with the chargeability of interest u/s.234A. In that case, the return was due to be filed on 31-10-1995 but the same was actually filed on 29-09-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsation to the Revenue for deprivation of the amount of tax due, for the period it is not paid. The Hon'ble Supreme Court in Pranoy Roy (supra) dealt with a situation in which the amount of self-assessment tax was paid before the due date u/s. 139(1). There was no amount of self assessment tax paid after the due date. The Hon'ble Court, therefore, directed to reduce such an amount of self assessment tax in the calculation of interest u/s 234A. It was so decided on the ground that once the amount of self assessment tax was paid, the Revenue could not be considered as deprived of the amount of tax due to it. As interest u/s 234A is compensatory, following the rationale, we hold that the consequence will be no different if the amount of self-a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /-. The assessee is aggrieved by such confirmation of addition as well as its enhancement. 15. After considering the rival submissions and going through the relevant material on record, we find that the facts and circumstances of this issue are admittedly mutatis mutandis similar to those of Mr. Rajendra Goel for the A.Y. 2010-11. Following the view taken hereinabove in such appeal, we delete the enhancement made by the ld. CIT(A) and restrict the disallowance to common expenses incurred by the assessee at Rs. 1,12,187/- (Rs.57,037 + Rs. 55,150, being the amount of Professional fee). This issue is, therefore, partly decided in favour of the assessee. 16. The other ground in this appeal is against the charging of interest u/s.234A and 234B ..... X X X X Extracts X X X X X X X X Extracts X X X X
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