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TMI Blog2023 (3) TMI 396X X X X Extracts X X X X X X X X Extracts X X X X ..... towards bus hire charges and wharfage - Disallowance u/s 40(a)(ia) - order passed under section 201(1) and 201(1A) - HELD THAT:- Payments made towards bus hire charges and wharfage required deduction of tax at source under section 194C of the Act and accordingly, demand raised under sections 201(1) and 201(1A) cannot be raised. Admittedly, the assessee has deducted tax on both the payments applying the provisions of Section 194C of the Act. Thus, no infirmity in the decision of learned Commissioner (Appeals). Accordingly, ground raised is dismissed. In the result, the appeal is dismissed. Computing book profit u/s 115JB - whether disallowance under section 14A read with Rule 8D can be made - HELD THAT:- We are of the view, the issue i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee, on instructions submitted that the main ground on the issue of deduction claimed towards leave encashment and the additional ground raised claiming deduction of Education Cess are not to be pressed. 3. In view of the submissions of learned Counsel, these grounds are dismissed as not pressed. 4. Thus, the only surviving issue in assessee s appeal as raised in the additional ground dated 15.01.2020 relates to the issue of disallowance of expenditure under section 14A read with Rule 8D. 5. Briefly the facts relating to this issue are, during the year under consideration, the assessee had earned exempt income by way of dividend amounting to Rs.19,068/-. Whereas, the assessee suo motu made disallowance of Rs.3,86,451/-. In c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Assessing Officer. 8. Having considered rival submissions and perused material on record, at the outset, we must observe that the additional ground raised by the assessee does not require fresh investigation into facts. Therefore, we admit the additional ground for adjudication. 9. The issue arising for consideration is, whether disallowance u/s 14A read with Rule 8D can exceed the quantum of exempt income earned in a particular assessment year. As per the settled legal principle in the decisions cited before us, the disallowance u/s 14A read with Rule 8D cannot exceed the quantum of exempt income earned during the year. In view of the aforesaid, we direct the Assessing Officer to restrict the disallowance under Section 14A read ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner (Appeals) agreed with the assessee that the appropriate provision under which tax was required to be deducted is section 194C. Further, learned Commissioner (Appeals) held that Section 40(a)(ia) can be invoked in a case where no deduction of tax has been made but not in a case where there is short deduction of tax. Accordingly, he deleted the disallowance made by the Assessing Officer. 14. We have considered rival submissions and perused material on record. Notably against the order passed under section 201(1) and 201(1A) of the Act, which forms the basis of present disallowance, the assessee had gone in appeal before learned Commissioner (Appeals) and thereafter before the Tribunal. While deciding the appeal, the Tribunal in ITA Nos ..... X X X X Extracts X X X X X X X X Extracts X X X X
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