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TMI Blog2020 (4) TMI 753X X X X Extracts X X X X X X X X Extracts X X X X ..... ow being disposed-off by way of this consolidated order for the sake of convenience and brevity. First, we take up appeal for AY 2010-11. ITA No.6561/Mum/2014, AY 2010-11 2.1 The perusal of order sheet entries would reveal that this appeal was already heard on 17/08/2017 and the order was pronounced on 06/09/2017. However, finding inadvertent mistake in the same, the said order was recalled by the bench on 06/12/2017. Accordingly, the appeal has come up for fresh hearing before this bench. 2.2 The assessee is under appeal challenging the order of Ld. Commissioner of Income Tax (Appeals)-1, Mumbai [CIT(A)] order dated 28/08/2014, Appeal No. CIT(A)-I/IT-57/2012-13. The grounds raised by the assessee read as under: - 1. On the facts and i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the arguments advanced by respective representatives. We have perused relevant material on record and deliberated on judicial pronouncements as cited before us. Our adjudication to the subject matter of appeal would be as given in succeeding paragraphs. 3.1 Facts on record would reveal that assessee being resident corporate assessee stated to be engaged as builder and developer was assessed for year under consideration u/s. 143(3) on 26/11/2012 wherein income of the assessee was determined at Rs. 0.78 Lacs after certain addition and disallowances against returned loss of Rs. 33.85 Lacs e-filed by the assessee on 30/09/2010. 3.2 Disallowance u/s. 14A: - During the assessment proceedings it transpired that the assessee earned exempt divide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o record requisite satisfaction before proceeding to compute disallowance u/s 14A r.w.r. 8D and therefore, the disallowance was bad in law. However, we find that no suo-moto disallowance was offered by the assessee despite earning exempt income in the form of dividend income and LTCG. The Ld. AO specifically took note of the fact that most of the income earned by the assessee was in the form of dividend income and capital gains. The said analysis, in our opinion, was quite sufficient to establish that Ld. AO had recorded the requisite satisfaction before proceeding to compute disallowance u/s 14A. Therefore, this plea raised by Ld. Sr. Counsel could not be accepted. 5.2 The Ld. Sr. Counsel submitted that while computing the disallowance, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITA No.2973/Mum/2017, AY 2013-14 6.1 The assessment for this year was framed u/s 143(3) on 26/02/2016. The assessee earned exempt income of Rs. 176.55 Lacs but did not offer any disallowance u/s14A.The Ld. AO worked out expense disallowance of Rs. 25.18 Lacs u/r 8D(2)(iii). The same, upon confirmation by Ld. CIT(A), is under further appeal before us. Finding the facts to be pari-materia the same, we direct Ld. AO to compute disallowance by considering only those investments which have actually yielded exempt income during the year. A chart has been placed before us for this year also which show that disallowance as worked out in this manner, would come to Rs. 13.65 Lacs. The Ld. AO is directed to verify the same and restrict the disallowan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and confirmed by the creditors also and therefore, the provisions of Sec. 41(1) were not applicable. The Ld. DR submitted that the onus to prove that the debts were subsisting was upon assessee. 6.4 After careful consideration, we find that on page no. 39 of the paper-book, the assessee has placed on record debt-confirmation dated 24/02/2016 issued by M/s Status Marketing Pvt. Ltd. The said confirmation letter acknowledges the fact that amount of Rs. 90.43 Lacs was receivable from the assessee as on 31/03/2014. It also acknowledges the fact that amount of Rs. 59.56 Lacs was due by the director of that entity to the assessee company against booking of flats in the Hill view park project. Upon perusal of the same, it could not be said that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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