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TMI Blog2022 (7) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... o make the disallowance u/s 14A applying Rule 8D of the Rules. This Action of the ld. AO is not in consonance with the provision of Section 14A and therefore, we find no justification in the said disallowance made u/s 14A of the Act. We accordingly delete the said disallowance and allow the common issue raised by the assessee. - I.T.A. Nos. 94 to 96/Kol/2022 - - - Dated:- 29-6-2022 - SRI MANISH BORAD , ACCOUNTANT MEMBER And SRI SONJOY SARMA , JUDICIAL MEMBER Sh. Miraj D. Shah , A/R , appeared on behalf of the Assessee Sh. Biswanath Das , Addl. CIT , appeared on behalf of the Revenue ORDER Per Manish Borad , Accountant Member : The captioned appeals filed by the assessee pertaining to the Assessment Years (in short ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. For that the Learned CIT(Appeals) erred is passing the appellate order without giving proper opportunity of hearing to the assessee. 4. For that the Learned CIT(Appeals) erred in adding Rs.8,95,826/- on account of disallowance u/s 14A of the Income Tax Act,1961 read with section Rule 8D of the Income Tax Rules, 1962. This addition is unjustified and the same be deleted 5. For that the interest computed u/s 234 A/B/C of the IT Act 1961 is over charged and wrongly calculated and or is not applicable to the assessee case hence the interest be deleted and or correctly computed. 6. The appellant craves leave to produce additional evidences in terms of Rule 29 of the Income Tax (Appellate Tribunal) Rules 1963. 7. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate order passed was in violation of principals of natural justice hence is bad in law and be quashed. 2. For that the Learned CIT(Appeals) erred is passing the appellate order without considering the written submission filed on 04/05/2018. 3. For that the Learned CIT(Appeals) erred is passing the appellate order without giving proper opportunity of hearing to the assessee. 4. For that the Learned CIT(Appeals) erred in upholding the addition of Rs.7,78,825 on account of disallowance u/s 14A of the Income Tax Act, 1961 read with section Rule 8D of the Income Tax Rules, 1962. This addition is unjustified and the same be deleted. 5. For that the Learned CIT(Appeals) erred in upholding the addition of Rs.69,891 on account of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the submission and moved ahead to compute the disallowance as per 8D of the Rules and made the St disallowance. The action of the ld. AO was confirmed by the ld. CIT(A). 5. The assessee has challenged the said disallowance before this Tribunal. Ld. Counsel for the assessee on the strength of the judgement of the Hon ble Supreme Court in the case of Godrej Boyce Manufacturing Company Limited vs. DCIT and Another reported in [2017] 394 ITR 0449 (SC) and another judgement of the Hon ble apex Court in the case of Maxopp Investment Ltd. vs. CIT reported in 402 ITR 640 (SC) stated that the ld. AO failed to record any satisfaction regarding the claim of the assessee and without giving any observation on the financials of the assessee firm had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion to such income which does not form part of the total income under this Act in accordance with such method as may be prescribed, if the Assessing Officer, having regard to the accounts of the assessee, is not satisfied with the correctness of the claim of the assessee in respect of such expenditure in relation to income which does not form part of the total income under this Act. (3) The provisions of sub-section (2) shall also apply in relation to a case where an assessee claims that no expenditure has been incurred by him in relation to income which does not form part of the total income under this Act:] [Provided that nothing contained in this section shall empower the Assessing Officer either to reassess undersection 147 or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the investment in shares is to be examined by the Assessing Officer. 10. Examining the facts of the instant case, we find that the assessee has given detailed submissions stating that the disallowance u/s 14A is not called for as no direct expenditure has been incurred to earn such exempt income and secondly interest disallowance is also not called for as sufficient interest free funds to the tune of Rs. 6.63 crores approx were available to cover up the investments of Rs. 6.64 crores as on 31.03.2013. However, ld. AO simply brushed aside the assessee s submission without recording any satisfaction about the correctness of the claim of the assessee proceeded to make the disallowance u/s 14A of the Act applying Rule 8D of the Rules. Thi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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