9911796707
TMI Blog2021 (2) TMI 796X X X X Extracts X X X X X X X X Extracts X X X X ..... ts were strategic investment as per the assessee and the same should be excluded for calculating disallowance under Rule 8D. As per Rule 8D(2)(i), the assessee made disallowance of ₹ 16,05,000/- under the head strategic investment and has taken 20% of employee cost and 5% of administrative cost. Thus, the findings given by the CIT (A) is just and proper. Therefore, Ground No. 1 is dismissed. Disallowance of depreciation claimed a wind mills - CIT-A deleted the addition admitting fresh evidence in violation of Rules 46(3) of the Income Tax Rules - HELD THAT:- As details were submitted by the assessee during the assessment proceedings as per the reply/submissions dated 11.12.2012 which is mentioned on page 1 of the Assessment Order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7, New Delhi For Assessment Year 2010-11. 2. The grounds of appeal are as under:- 1. In the facts and circumstances of the case, the Ld.CIT(A) has erred in deleting the additions of ₹ 4,24,88,156/- made by the A.O u/s 14A in accordance with Rule 8D of the Income Tax Rule. 2. In the facts and circumstances of the case, the Ld.CIT(A) has erred in deleting the additions of ₹ 17,39,69,513/- made by AO by disallowing depreciation claimed on Wind Mills by admitting fresh evidence in violation of Rule 46(3) of the IT Rules. 3. In the facts and circumstances of the case, the Ld.CIT(A) has erred in deleting the addition of ₹ 27,83,426/- made u/s 36(1) (iii) by holding that the appellant had borrowed funds which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 193,969,533/- 3 Disallowance u/s 35 D of the Act. 3,533,107/- 4 Disallowance u/s 36(1) (iii) of the Act. 2,783,426/- 247,774,222/- 4. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) allowed the appeal of the assessee on the legal issue as well as on the merits. 5. The Ld. DR submitted that Section 14A of the Act was inserted into the Income Tax Act, 1961 vide Finance Act, 2001 with retrospective Application from 1/4/1962. It provides for disallowance of expenditure in relation to in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 17-TIOL-353-HC-P H-IT] 6. As regards Ground No. 2, the Ld. DR submitted that the CIT(A) erred in deleting the addition in respect of disallowance of depreciation claimed a wind mills by admitting fresh evidence in violation of Rules 46(3) of the Income Tax Rules. 7. As regards Ground No. 3, the Ld. DR submitted that the CIT(A) erred in deleting the addition of ₹ 27,83,426/- made u/s 36(1)(3) by holding that the assessee had borrowed funds which was used for business purposes and was paying interest on these funds. 6. The Ld. AR in all the grounds which were contested by the Department relied upon the findings of the CIT(A). 7. We have heard both the parties and perused the material available on record. As regards Ground ..... X X X X Extracts X X X X X X X X Extracts X X X X
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