9911796707
TMI Blog2019 (6) TMI 1006X X X X Extracts X X X X X X X X Extracts X X X X ..... lso. Considering all, it cannot be said that the Tribunal has committed any error in deleting the disallowance made by the AO u/s 14A. See GUJARAT STATE FERTILIZERS AND CHEMICALS LTD [ 2018 (8) TMI 922 - GUJARAT HIGH COURT]. Set off of loss incurred on sale of fertilizers bonds - treating it as business loss and blatantly ignoring the fact that the fertilizer bonds subscribed to by the assessee falls within the bracket of section 2(14) - Whether sale of fertilizer bonds is not allowable as business loss and is to be instead treated as capital loss? - HELD THAT:- Proposed question is concerned, the same is also covered by the findings recorded by the Co-ordinate Bench in para 17 [ 2018 (8) TMI 922 - GUJARAT HIGH COURT] of its judgement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ₹ 15 Lacs from ₹ 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 fertilizers bonds at ₹ 67,63,10,469/-? treating it a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Court in the 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 f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wance of loss of sale of fertilizer bonds at ₹ 91,45,000/- treating it as 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 subs ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
