9911796707
TMI Blog2019 (6) TMI 1006X X X X Extracts X X X X X X X X Extracts X X X X ..... sed the following two substantial questions of law in the Memorandum of the Tax Appeal :- "[A]. Whether on the facts and in circumstances of the case, the learned ITAT has erred in law and on facts in restricting the disallowance made u/s.14A of the Act to Rs. 15 Lacs from Rs. 257.76 lacs on account of administrative expenses, without appreciating that once it is held that provisions of Section 14A are attracted the disallowance for administrative expenses is to be derogatorily worked out as per Rule 8D of Income Tax Rules and there is no discretion for making ad-hoc disallowance? [B]. Whether on the facts and in circumstances of the case and in law the Appellate Tribunal was justified in allowing set off of loss incurred on sale of f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he aforesaid decision has specifically observed that in a case where the assessee was having sufficient funds available with it, more than amount invested for earning the dividend, the disallowance in respect of interest expenditure under Section 14A of the Act read with Rule 8(d) of the Rules is not permissible. The decision of the Division Bench of this Court in the case of the very assessee for the Assessment Year : 2004-2005 has attained finality. In the present case, it is required to be noted that in the earlier years also more particularly, even in the Assessment Year : 2004-2005, the assessee was also having mixed funds and still considering the fact that the assessee was already having sufficient surplus interest free funds, the Di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital loss as against business loss claimed by assessee. We find that the appellant company is engaged in manufacturing of fertilizer. Incentive is provided by the Government of India (GOI) which is based on the quantum of DAP & Urea based fertilizer dispatched. The sale price of fertilizers are fixed by the Government of India and many a times, such price is even lower to the cost of production. Therefore to compensate the manufacturer for the difference between the retention price of individual unit and sale price, subsidy is given by the Government. There is no dispute to the fact on the part of the Revenue authority that the assessee accounts for such subsidy receivable on accrual basis which is credited to the sales account and offer ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
