9911796707
TMI Blog2022 (9) TMI 866X X X X Extracts X X X X X X X X Extracts X X X X ..... eals, these were heard together and are being disposed off by this consolidated order. 2. At the outset, it is noted that an adjournment application dated 20.07.2022 has been moved by CA B K Nohria on behalf of the assessee stating that due to unavoidable urgent work, he has to go out of station. Further, he has stated in the application that he has requested the assessee to provide power of attorney to represent before the Tribunal and in view of the same, the proceedings may be adjourned to another suitable date. We find that similar submissions have been made in the past and the Coordinate Benches have adjourned the matter from time to time however till date, the power of attorney has not been issued by the assessee in favour of CA B K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowing Rs. 4,29,72,691/- under Section 36(1)(viia) on account of provision of NPA written back which has not been claimed as expenditure by the assessee during the assessment year 2013-14 and in any earlier years. 3. That on the facts and in the circumstances of the case the Learned CIT(A) Panchkula has erred in law and facts in upholding the contention of the learned AO in adding Rs. 35,60,752/- on account of interest on seed money belonging to Govt. of India while acting as nodal agency of the Govt. being an undertaking of Govt. of Haryana which is a deviation from consistent view taken in past by the department on account of no addition in earlier years. 4. That the appellant reserves the right to add, amend or delete one or more o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.5 lakhs. The relevant findings of the ld. CIT(A) are contained at Para Nos. 4.10 to 4.12 of the impugned order which reads as under: 4.10 I have gone through the appellant contention w.r.t. assessee's plea of breaking up of expenditure incurred from its own funds and non incurring of expenses to earn exempt income. Respectfully considering the decisions of case laws relied upon by Ld. assessing officer, after giving due consideration to all the facts do not see any need to interfere with the view taken by ld. A.O. However, while placing reliance on the decision of Hon'ble Punjab and Haryana high court in the case of Punjab Tractors Ltd. versus Commissioner of income tax particulars [2017] 78 taxmann.com 65 (Punjab & Haryana) da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at is in relation to the income which does not form part of the total income'. The hon'ble court states that, only that expenditure which has been incurred in relation to non-taxable income has to be disallowed. If an expenditure incurred has no 'principal connection' with the exempted income, then such an expenditure would clearly be treated as not 'in relation to the income which does not form part of the total income' and thus, such expenditure would be allowed as business expenditure. The SC further observed that the action of the AO in the case of State Bank of Patiala, by restricting the disallowance of expenditure to the amount which was claimed as exempt income, by applying Section 14A r.w. Rule 8D was reason ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regard, the brief facts of the case are that during the course of assessment proceedings, the AO on perusal of the P&L A/c observed that an income of Rs. 4,29,72,691/- has been shown as provision against NPA written back in the P&L A/c. However, in the computation of income, the same has been reduced from the taxable income and accordingly, a show cause notice was issued and after taking into consideration the submissions of the assessee, the addition of Rs. 4,29,72,691/- was made in the hands of the assessee. During the appellate proceedings before the ld. CIT(A), the assessee took various contentions, however, the same were not found acceptable and the ld. CIT(A) by following the order of the ld. predecessor for the AY 2012-13, has confi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee during the year, the AO was fully justified in adding interest received on seed money amounting to Rs. 35,60,752/-. Accordingly, we do not see any infirmity in the findings of the ld. CIT(A) and the same is hereby confirmed and ground of appeal taken by the assessee is dismissed. 10. In ITA No. 1352/Chd/2019 pertaining to AY 2014-15 and ITA No. 1353/Chd/2019 pertaining to AY 2015-16, the ld. DR submitted that identical grounds of appeal has been taken by the assessee. Therefore, following our decision in ITA No. 1351/Chd/2019, all these appeals are also dismissed in light of the aforesaid directions. 11. Before parting, we hereby grant liberty to the assessee to seek a recall of the present order where it gives an undertaking to ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
