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TMI Blog2018 (7) TMI 2321X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 7,55,230/- on the facts and circumstances of the case. 3. The learned CIT(A) was not justified in not deleting the entire disallowance under section 14A of the Act, when the AO has categorically stated that there was no expenditure incurred for earning the dividend income on the facts and circumstances of the case. 4. The learned CIT(A) was not justified in restricting the items of investment as stated in the order, rather all such investments not earning dividend ought to have been directed to be deleted in computing the disallowance under section 14A read with rule 8D, as held in the decision of the Special Bench of the ITAT, Delhi in Vireet Investment P Ltd, 58 ITR(T) 313 on the facts and circumstances of the case. 5. Without prejudice the disallowance was excessive and was to be substantially reduced on the facts and circumstances of the case. 6. The appellant craves leave of this Hon'ble Tribunal, to add, alter, delete, amend or substitute any or all of the above grounds of appeal as may be necessary at the time of hearing. 7. For these and other grounds that may be urged at the time of hearing of appeal, the appellant prays that the appeal may be allowe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance under section 14A of the Act, when the AO has categorically stated that there was no expenditure incurred for earning the dividend income on the facts and circumstances of the case. 4. The learned CIT(A) was not justified in restricting the items of investment as stated in the order, rather all such investments not earning dividend ought to have been directed to be deleted in computing the disallowance under section 14A read with rule 8D, as held in the decision of the Special Bench of the ITAT, Delhi in Vireet Investment P Ltd, 58 ITR (T) 313 on the facts and circumstances of the case. 5. Without prejudice the disallowance was excessive and was to be substantially reduced on the facts and circumstances of the case. 6. The learned CIT(A) erred in law and on facts in not appreciating that the disallowance of expenditure at 10% of total expenditure on an estimate basis was not permitted, when the books of the appellant was not rejected, on the facts and circumstance of the case. 7. The appellant craves leave of this Hon'ble Tribunal, to add, alter, delete, amend or substitute any or all of the above grounds of appeal as may be necessary at the time of hearing. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the relevant year. In support of his contention, he placed reliance on judgement of Special Bench of Tribunal rendered in the case of ACIT Vs. Vireet Investment (P) Ltd. as reported in (2017) 154 DTR (Del) (SB) 241, copy available on pages 60 to 85 of paper book and my attention was drawn to para no. 11.16 of this order of the Special Bench of the Tribunal. At this juncture, the bench wanted to know as to whether any judgement of High Court on this aspect of the matter is available and in reply, it was submitted by ld. AR of assessee that High Court judgement is available and at the time of hearing, he undertook that after completion of hearing, he will file the copy of judgment of Hon'ble High Court on this aspect of the issue. But no such judgment copy was submitted till the date of passing of this order. The ld. DR of revenue supported the orders of authorities below. 6. I have considered the rival submissions. First of all, I reproduce para 11.16 of the decision of Special Bench of the Tribunal rendered in the case of ACIT Vs. Vireet Investment (P) Ltd. (supra). The same is as under. "11.16. Therefore, in our considered opinion, no contrary view can be taken under these ci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not justified in confirming the disallowance of expenditure at 10% of total expenditure on an estimate basis. In this regard, he submitted that the P&L account for Assessment Year 2012-13 is available on page no. 45 of paper book as per which there is indirect income of Rs. 42,96,932/- and indirect expenses of Rs. 28,13,386.86 and the AO has disallowed 10% of entire indirect expenses. At this juncture, the bench observed that the income reported in this year is Creditors Written Off, Director -Professional Fee, Dividend Received, Interest received from Banks, Interest Received -K.G. Enterprises and Profit on Sale of Shares. The bench observed that there is no business income in the present year and then how any expenditure is allowable in the present year including Accountancy Charge - Rs. 19,000/-, Club Expenses-Rs. 7,327/-, Commission Paid - Rs. 2 Lakhs, Depreciation - Rs. 1,50,389/-, Electricity Charges - Rs. 1,13,366/-, Interest-Sundaram Finance Housing Loan - Rs. 14,29,951/-, Processing Fee-Loan Sundaram Finance - Rs. 4,19,981/-, Telephone charges - Rs. 55,623.56, Travelling Expenses - Rs. 48,500/- etc. In reply it was submitted by ld. AR of assessee that up to Assessment Year ..... X X X X Extracts X X X X X X X X Extracts X X X X
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