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TMI Blog2020 (9) TMI 909X X X X Extracts X X X X X X X X Extracts X X X X ..... t of other grounds of appeal pertaining to disallowance u/s. 14A the appeal of the assessee are adjudicated together, since similar facts on identical issue are involved in all the three years contested in the appeals. Therefore, this ground of appeal is adjudicated by taking ITA No. 395/Ahd/2017 as lead case and its finding will be applicable to other two cases. Disallowance of Rs. 13,96,684/- u/s. 14A assessment year 2012-13 5. During the course of assessment, the assessing officer noticed that assessee had earned share of profit from the firms which was exempt u/s. 10(2A) of the act. Therefore, after invoking the provision of section 14A, the assessing officer has disallowed an amount of Rs. 20,91,532/- as the expenses incurred towards earning exempt income from the investment made in the partnership firm and added to the total income of the assessee. 6. The assessee has preferred appeal before the Id. CIT(A). The Id. CIT(A) observed that the interest free and interest bearing funds with the assessee are completely mixed up and un-identifiable, therefore, allocated interest expenditure in proportionate basis and the Id. CIT(A) has allocated interest expenditure to the amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recomputes the disallowance by taking investment in the partnership firm amounting to Rs. 18,79,18,513/- of borrowed funds We accordingly set aside the assessment to the file of Assessing Officer with the above directions. 6. In the result, the appeal is treated as allowed for statistical purposes. Pronounced in the open court today on the 12' day of June, 2017 " Respectfully following the decision of the Co-ordinate Bench on identical facts and similar issue, we set aside the issue to the file of assessing officer for re-computing the disallowance of interest after excluding owned funds and interest free funds as directed above in the finding of Co-ordinate Bench in respect of disallowance u/s. 14A for the A.Y. 2012-13 to 2014-15. Accordingly, this ground of appeal of the assessee is allowed for statistical purposes 9. In the result, the appeal of the assessee is allowed for statistical purposes. ITA No. 394/Ahd/2017 assessment year 2010-11 10. The assessee has raised following grounds of appeal:- "1. The learned Commissioner of Income Tax (Appeal)-l2 Ahmedabad, has grievously erred in facts and law while passing the order under consideration. 2. The learned Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as per banakhat the assessee has paid the amount of Rs. 1.8 crores and the explanation of the assessee was afterthought. Therefore, the assessing officer has added the amount of Rs. 1.8 crores in the hand of the assessee. 12. Aggrieved assessee has filed appeal before the Id. CIT(A). The Id. CIT(A) has dismissed the appeal of the assessee treating the reasons reported by the assessing officer. 13. During the course of appellate proceedings before us, the Id. counsel has submitted paper book comprising details and documents furnished before the assessing officer and Id. CIT(A) at the time of assessment and appellate proceedings. The Id. counsel has contended that documents on the basis of which the addition made was found and impounded during the survey at some other premises and not found out during the search at the residence or business premises of the assessee. The Id. counsel has referred decision of Hon'ble Gujarat High Court in the case of PCIT vs. Saumya Construction 81 taxmann.com 292 that addition can be only made on the basis of material collected during search. It is also contended that the material impounded during the survey proceedings at some other premises ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bated assessment u/s. 143(3) r.w.s. 153A of the Act was completed for assessment year 2010-11 on 14th March, 2016. It is undisputed fact that during the year consideration there was unabated assessment made in the case of the assessee u/s. 153A of the Act. The assessing officer has made addition of Rs. 1.8 crores on the basis of banakhat impounded during the course of survey u/s. 133A at the premises of the assessee firm. Therefore, it is clear that addition was made only on the basis of material found during the course of survey at the premises of the firm where the assessee was a partner. The Id. CIT(A) has also stated the document on the basis of which addition was made was not seized document but only impounded from assessee's associate firm during survey however the Id. CIT(A) has treated the assessment made u/s. 153 A of the act as valid unabated assessment without any valid reason. It is also noticed that in the related cases of the firm Shayona Land Corporation for assessment year 2010-11 & 2012-13 to 2014-15 in respect of on money receipt based upon document seized from the other group concern of the assessee firm the assessment framed u/s. 153 A of the Act was held a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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