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TMI Blog2019 (4) TMI 1118X X X X Extracts X X X X X X X X Extracts X X X X ..... ended and claimed that the AO did not refer to the provisions of section 43B . In fact the submission of the appellant, itself is in ambiguity and nothing can be arrived at from the said submission. As the contention of the AO has not been refuted by the appellant during the appellate proceeding and also no details and evidences in this regard were furnished, no reason to interfere with the order of the AO. Addition u/s 14A - Disallowance of interest being the expenses incurred on exempt income - HELD THAT:- No infirmity in the assessment order passed by the Assessing Officer disallowing the proportionate expenditure of ₹ 4,87,464/- u/s.14A read with Rule 8D of the Rules and therefore no interference in this action is called for. The disallowance so made is hereby confirmed. Assessee appeal dismissed. - ITA No. 2344/PUN/2017 - - - Dated:- 16-4-2019 - Shri Anil Chaturvedi, AM And Shri Partha Sarathi Chaudhury, JM For the Assessee : None For the Revenue : Shri M.K. Verma ORDER PER PARTHA SARATHI CHAUDHURY, JM : This appeal preferred by the assessee emanates from the order of the Ld. CIT(Appeals)-4, Pune dated 28.02.2017 for the assessment yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... audit report. During further hearing Shri. Dhanajay A. Shengate, C.A., duly authorized by the assessee attended and submitted a letter stating that the depreciation is allowable as claimed by the company and the same may be allowed. Further, a letter dated 07/01/2016 was written and duly served on the assessee on 13/01/2016 rejecting his objection raised by the assessee on issuance of notice u/s 148 of the Act and the assessee was also given one more and final opportunity to submit the complete information and all documents called for. Thereafter, the assessment proceedings u/s.143(3) r.w.s.147 of the Act was completed by the Assessing Officer assessing total income of the assessee at ₹ 26,45,564/- after making following disallowances : i) Disallowance of Excess Depreciation Claimed Rs.3,95,132/- ii) Disallowance of expenses on machineries Rs.2,06,651/- iii) Disallowance of interest u/s.40(a)(ia) of the Act Rs.6,36,018/- iv) Disallowance of Expenditure in respect of exempt income u/s.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sal of the findings of the Ld.CIT(Appeals) with regard to the ground No.1 in the grounds of appeal before us, we find that entire facts and circumstances have been analyzed and reasoned decision has been given by the Ld.CIT(Appeals). We do not find any infirmity in the order of Ld.CIT(Appeals). At the same time, the assessee is not vigilant before us to controvert the findings of the Assessing Officer and Ld.CIT(Appeals). In view of the above facts and circumstances, we are of the considered view that the order of the Ld. CIT(A) on this issue is fair and reasonable and it does not call for any interference and the same is thereby, upheld. Accordingly, ground No.1 raised in appeal by the assessee is dismissed. 9. Ground No.2 is with regard to the disallowance of interest expenses of ₹ 6,36,018/- due to non-payment of TDS after end of year. 10. During assessment proceedings, on verification of the financial statements it was noticed by the Assessing Officer that the assessee had paid interest of ₹ 94,907/- on deposits and also paid interest of ₹ 5,41,111/- to Tata Finance Ltd. The assessee failed to produce any details of the interest paid and failed to prove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es incurred on exempt income. 14. During assessment proceedings, on verification of the financial statements the Assessing Officer found that the assessee company had invested an amount of ₹ 60,00,000/- in shares of related company M/s. Ajanta Universal Fabrics Ltd. Karad with intention to earn exempt income. The assessee had invested the funds of the company to earn exempt income and on the other hand the company had taken loans from banks and paid interest and claiming deduction thereon. The assessee stated that there is no any expenditure in respect of exempt income and hence the provisions of section 14A cannot be invoked. 15. During the First Appellate Proceedings, the Ld. CIT(Appeals) observed that assessee is in receipt of income which do not form part of the total income in the form of share of profit from partnership firm of ₹ 4,87,464/- and the said income has been claimed exempt. The Assessing Officer has examined the claim of the assessee that no expenditure in relation to exempt income has been incurred and therefore, after recording his satisfaction on the correctness of the assessee s claim has proceeded with the disallowance u/s.14A read with Ru ..... X X X X Extracts X X X X X X X X Extracts X X X X
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