9911796707
TMI Blog2022 (5) TMI 1591X X X X Extracts X X X X X X X X Extracts X X X X ..... read with rule 8D (2) (i ii) by the appellant company. 1.1 That the learned Commissioner of Income Tax(Appeals) has failed to appreciate that since appellant company had earned dividend income only of Rs 7,62,771/- but AO made a disallowance of Rs 14,98,610/-. Upholding such disallowance in excess of the amount of income earned, is against the intent and spirit of the law. 1.2 That the learned Commissioner of Income Tax (Appeals) did not appreciated that, AO ignoring submission of appellant that it has suo motto added back related expenses of Rs 44643/-, still proceeded with the addition without discharging his burden to establish that, the claim of expenses incurred by appellant is not correct and further expenditure had been incurr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x (Rs.138551/-). That disallowance so upheld by learned Commissioner of Income Tax (Appeals) is based on misinterpretation of statutory provisions of law and hence unsustainable. 3.1 That findings of Commissioner of Income Tax (Appeals) for upholding the disallowance is reliance upon Madras High Court judgment of 1998, ignoring the subsequent judgment of Karnataka High Court of 2008 sited by appellant, in disregard the norm of following the latter decision. Learned Commissioner (Appeals) did not appreciate the settled legal position that interest on late deposit of TDS/ SERVICE TAX /FBT is mandatory provision in law which is compensatory in nature as such not in nature of penalty, hence such expenditure is eligible business expenditure u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ividend from mutual fund of Rs.1,03,60,745/- and suo moto disallowed an amount of Rs.5,57,215/- u/s 14A. The AO by resorting the provisions of Rule 8D(2)(ii) computed disallowance to Rs.96,28,052/-. 5. The ld. CIT (A) directed the AO to recompute the disallowance u/s 14A by considering the investments from which dividend has been earned by the appellant company and relying on the order of the Special Bench of ITAT in the case of CIT Vs Vireet Investments Pvt. Ltd. 82 Taxman 415, we hereby direct that only the investments which yielded the exempt income be considered for computation of disallowance u/s 14A r.w. Rule 8D." 5. In the absence of any material change and legal proposition, we hereby direct that only the investments which yiel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the ld. CIT(A)." 7. In the absence of any material change and legal proposition, we affirm the order of the ld. CIT(A). Interest on Late Deposit: 8. During the year, the assessee paid interest and debited the same to P&L account with regard to interest on late deposit of FBT of Rs.14,433/-, penalty on service tax of Rs.2,000/- and interest on late deposit of service tax of Rs.1,38,551/-. 9. The ld. CIT(A) confirmed the disallowance relying on the judgment of Hon'ble Chennai High Court in the case of CIT Vs. Chennai Properties & Investments Ltd. 239 ITR 435 (Mad.) (1998). 10. The Hon'ble Apex Court observations in this regard in the case of Lachmandas Mathura Vs. CIT reported in 254 ITR 799 are as follows: "The High Court has proc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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