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TMI Blog2021 (9) TMI 642X X X X Extracts X X X X X X X X Extracts X X X X ..... r consideration afresh. The above directions will hold good for disallowance under section 14A of the Act r.w.r. 8D(2)(i) of the Rules. Disallowance under section 14A of the Act r.w.r. 8D(2)(iii) - Neither the assessee nor the AO have made any attempts to identify which are the expenses that can be said to be attributable to the earning of the said income. We therefore set aside the said disallowance also to the AO for fresh consideration with directions to the assessee to substantiate its case that none of the other expenses can be attributed to the earning of the exempt income. We accordingly allow the appeal of the assessee for statistical purpose. - ITA No. 2624/Bang/2018 - - - Dated:- 8-9-2021 - N.V. Vasudevan, Vice President ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Learned Counsel for the assessee in this regard relied on judicial pronouncement in the case of Collector, Land Acquisition Vs. Katiji and Others 1987 AIR 1353 1987 (SC) and decision of ITAT Bengaluru Bench in the case of FlowServe India Controls Pvt. Ltd., Vs. DCIT (2018) 96 taxmann.com 432 (Bang. Trib). 4. We have considered the submissions of the learned Counsel for the assessee and the submission of the learned DR who opposed the prayer for condonation of delay. In our view, the reasons given for the delay in filing the appeal shows that there was no willful act on the part of the assessee and the assessee is not guilty of negligence. We therefore condone the delay in filing the appeal by the assessee. 5. As far as the merits of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted as and when the due date for discharge of liability arises like payment of jet fuel, transportation, taxation, salary and wages and general administration expenses etc. The assessee submitted that it receives payments from customers on a daily basis. However, there are fixed agreed monthly dates for all payments for purchase of ATF, commission, transportation charges, salary etc. Since the daily receipts lies idle, such surplus funds are invested temporarily in UTI. Moreover, the assessee knows the monthly due dates for discharge of all major liabilities, the assessee has adopted the policy of investing all receipts from the customers to be only withdrawn on the next due date scheduled for payment. The assessee submitted that such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... % of (58,77,50,000)/2 = 0.5% of 29,38,75,000/-. =14,69,375/- Aggregate of clause (ii) and clause (iii)= ₹ 18,11,700/- The aggregate disallowance would be ₹ 18,11,700/- which is added back to the total income of the assessee. (Addition:18,11,700/-) 9. Before the CIT(A), the assessee reiterated submissions as were made before the AO. The CIT(A) upheld the order of the AO by observing in para 8 of the impugned order that the assessee has not brought out a cogent evidence as to how the facts of the case warrant no disallowance and to demonstrate that the facts of the assessee are similar to the facts of those cases which were relied upon by the assessee before the CIT(A). 10. Aggrieved by the order of CIT(A), a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of the issue in the appeal. We, therefore, admit the additional evidence. 13. As far as correctness of the addition made under section 14A of the Act is concerned, we find that this Tribunal in assessee's own case for Assessment Year 2011-12 in ITA No. 790/Bang/2018 order dated 16.11.2018 admitted additional evidence and remanded the issue of disallowance under section 14A of the Act to be considered afresh by the AO. In the present Assessment Year, we find that the assessee has taken a specific plea before the AO that the investments were made out of surplus business funds and not out of any borrowed funds. This submission has not been referred to either by the AO or by the CIT(A). We are of the view that in the light of addit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Auditors' Remuneration 0.14 0.17 Audit fees Taxation and other 0.51 0.53 matters Certification 9.06 6.00 Reimbursements Rates and taxes Insurance 5.35 4.99 Travelling and conveyance expenses 0.61 1.07 Telephone expenses Miscellaneous expenses 5.45 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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