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TMI Blog2015 (10) TMI 2778X X X X Extracts X X X X X X X X Extracts X X X X ..... have set aside the order of CIT(A) and remanded the identical issues to the file of the CIT(A) for a fresh decision in accordance with law. For the detailed reasons given therein, we set aside the order of CIT(A) and remand the issues to the file of CIT(A) with a direction to decide the same afresh in accordance with law after affording due and reasonable opportunity of being heard to the assessee. Investments in shares and mutual funds which was exempt u/s 10(34) - HELD THAT:- It is apparent from the order of the CIT(A) that assessee earned dividend income of ₹ 53,11,447/- which was claimed exempt u/s 10(34) 10(35) of the Act, during the course of assessment proceedings. It was shown as taxable in the return of income as the assessment has been made u/s 115JB, it did not affect any taxability of the income. Considering the entire facts and circumstances of the present case, we are satisfied that the assessee was prevented by sufficient cause from filing the present appeal. At the same time, it is also well settled law that length of delay is not to matter in the context of condonation of delay. The jurisdiction to condone delay should be exercised liberally. The matt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Amount as on 31.3.07 Amount as on 31.3.06 1. 150000 Birla FTP Retail 386 D Series U-G 15,00,000/- - 2. 10000000 LI 30 'D SBI Debt Fund Series - 90 Days - Div. 10,00,00,000/- - 3. 4019703 LI 33 D SBI Debt Fund Series- 90 Days- Div. 4,01.97,480/- - 4. 4000000 LI 36 G SBI Debt Fund Series -90 Days G 4,00,00,000/- - 5. 9787813 LO30 Magnum Insta Cash Fund- Dividend 10,45,40,201/- - 6. 100000 Principal PNB FMP S!V 385 D REG-G 10,00,000/- - 7. 250000 Reliance FH Fund Ml 371 D SIVRET-G 25,00,000/- - 8. 20000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r shall not form part of the total income, as appearing in the balance sheet of the assessee, on the first day and the last day of the previous year, C =the average of total assets as appearing in the balance sheet of the assessee, on the first day and the last day of the previous year; (iii) an amount equal to one-half per cent of the average of the value of investment, income from which does not or shall not form part of the total income, as appearing in the balance sheet of the assesses, on the first day and the last day of the previous year. The assessee vide order sheet entry dated 20.11-09 was asked that there were total investments of ₹ 29,38,09,697/- as on 31.03.2007 and as per assessee, ₹ 24,47,37,6817- are investments on which dividend income is not taxable. The calculation under section 14A r.w. Rule 8D is as follows:- Opening Investments as on 01.04.06 0 Closing investments as on 31.03.07 244737681 Total 244737681 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d (head note) as under:- Held, that the provisions of rule 8D of the Rules which have been notified with effect from March 24, 2008, would apply with effect from assessment year 2008-09. Even prior to assessment year 2008-09, when rule 8D was not applicable, the Assessing Officer had to enforce the provisions of sub-section (1) of sect ion 14A. For that purpose, the Assessing Officer is duty bound to determine the expenditure which has been incurred in relation to income which does not form part of the total income under the Act. The Assessing Officer must adopt a reasonable basis or method consistent with all the relevant facts and circumstances after furnishing a reasonable opportunity to the assessee to place all germane material on the record. The proceedings for assessment year 2002-03 would stand remanded to the Assessing Officer. The Assessing Officer should determine as to whether the assessee had incurred any expenditure (direct or indirect) in relation to dividend income/ income from mutual funds which does not form part of the total income as contemplated under section 14A . The Assessing Officer can adopt a reason-able basis for effecting the apportionment. While ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fresh decision in accordance with law. For the detailed reasons given therein, we set aside the order of CIT(A) and remand the issues to the file of CIT(A) with a direction to decide the same afresh in accordance with law after affording due and reasonable opportunity of being heard to the assessee. For statistical purposes, Revenue s appeal is allowed. ITA No. 297/Chd/2014 8. The only effective ground raised by the assessee reads as under :- 1. That the authorities below have erred in not exempting dividend income of ₹ 53,11,4477- (wrongly mentioned at ₹ 20,19,367/- ) received by the appellant on various investments in shares and mutual funds which was exempt u/s 10(34) and for which claim was duly made in the submissions filed before the AO CIT(A)- II but not made in the return of income. 9. It is observed that there is a delay of about 891 days in filing the appeal. The assessee has submitted an Application for condonation of delay, which reads as under;- Ludhiana 25.03.2014 The Hon'ble Income Tax Appel late Tribunal Chandigarh, Bench B , Kendriya Sadan, Sector 9 Chandigarh Re: Mrs. Sector Foo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessment year 2007-08 was passed by the learned CIT(A)- I) on 08.08.2011 which was received by the assessee on 18.08.2011. 3. That the assessee had claimed exempt ion in respect of dividend income of ₹ 53,11,447/ - (Wrongly mentioned at ₹ 20,19,367/-) in the writ ten submission filed before the AO as well as CIT(A)-H which exempt ion by an oversight was not claimed in the return of income. A. That since the issue regarding exempt ion of dividend income was not specifically deal t with by the lower authorities and the CIT(A)-II had decided all the other issues in favour of the assessee, I inadvertently did not advise my clients to file an appeal before the Hon'ble Tribunal . 5. That the mistake came to light only when I went through the file for preparing the department 's appeal . 6. That the delay in filing the appeal is inadvertent and the same may please be condoned. (Sd. Subhash Aggarwal ) Deponent Verification I do hereby solemnly declare and affirm that the above affidavit is true and correct to the best of my knowledge and belief and nothing material has been concealed. (Sd. Subhash Aggarwal ) ..... 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