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TMI Blog2024 (3) TMI 432X X X X Extracts X X X X X X X X Extracts X X X X ..... hile dismissing the Tax Appeals of the Revenue being. [ 2018 (8) TMI 922 - GUJARAT HIGH COURT] . Admittedly, the Tribunal has not considered such decisions and only referred to and relied upon the submissions made by the authorised representative of the assessee to decide the issue for disallowance under Section 14A of the Act. The impugned order of the Tribunal is required to be set aside and matter is required to be remanded to the Tribunal to decide such grounds afresh de novo. - HONOURABLE MR. JUSTICE BHARGAV D. KARIA AND HONOURABLE MR. JUSTICE NIRAL R. MEHTA Appearance: For the Appellant(s) No. 1 : Mr Manish J Shah(1320) For the Opponent(s) No. 1 : Karan G Sanghani(7945) COMMON ORAL ORDER (PER : HONOURABLE MR. JUSTICE BHARGAV D. KARIA) 1. Tax Appeal No. 60 of 2024 is filed by the assessee under Section 260A of the Income Tax Act, 1961 (for short the Act ) arising out of the order dated 24th March, 2023 passed by the Income Tax Appellate Tribunal, Ahmedabad A Bench, Ahmedabad (for short the Tribunal ) in ITA No. 547/Ahd/2016 for Assessment Year 2011-12 raising the following proposed questions of law. (i) Whether on the facts and circumstances of the case, the Tribunal has mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee and deleted the disallowance made in respect of the interest expenses of Rs. 01,82,91,360/- and confirmed the disallowance on administrative expenses of Rs. 02,12,49,050/-, with a direction that for the purpose of arriving at average value of investment under Rule 8D of the Income Tax Rules, 1962 (for short the Rules ), investment made in TIFERT and National Savings Certificate to be excluded. 2.3 Being aggrieved by the order of the CIT(A), Revenue preferred appeal being ITA No. 547/Ahd/2016 and the assessee preferred appeal being ITA No. 624/Ahd/2016 on various grounds of appeal. Ground No. 2 of the assessee appeal and Ground No. 1 of the Department s appeal were in respect of partly deleting addition under Section 14A of the Act CIT(A). 3. The Tribunal, after considering the submissions made by both the sides, passed common order dealing with the issue of disallowance of administrative expenses under Section 14A of the Act, holding as under. 7. The Ld. AR submitted that Ground no. 2 is related to disallowance of administrative expenditure amounting to Rs. 2,12,49,050/- to arrive at average total asset for computing disallowance as per formula prescribed by Rule 8D on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e reduced from the opening and closing stock of the current assets and have been taken into consideration by the Assessing Officer. Accordingly, the Tribunal remanded the matter back to the Assessing Officer for proper verification and adjudication and decide the same as per the law. 4. Learned advocate Mr. Manish J. Shah for the appellant-petitioner submitted that the petitioner had placed on record the orders of the Tribunal for the previous Assessment Years being 2009-10 and 2010-11, wherein the Tribunal, in similar facts of disallowance under Section 14A, made addition of lump sum amount. It was also pointed out before the Tribunal that the order of the Tribunal was confirmed by this Court in Tax Appeal No. 2096 of 2010 and Tax Appeal No. 868 of 2010. 4.1 Reliance was also placed on the decision of the Bombay High Court in case of Reliance Utilities Power Ltd. [(2009) 313 ITR 340 (Bom)]. As the Tribunal did not consider such decisions and contentions of the assessee, the assessee preferred Miscellaneous Applications in both the Appeals as well as Cross Objections being Miscellaneous Application Nos. 55 to 57/Ahd/ 2023. The Tribunal, however, by order dated 23rd August, 2023 dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be looked independently on factual aspects especially expenses and interest earned. Therefore, there is no need to interfere with the order dated 24.03.2023 and there is no need to rectify the same. 4.2 The petitioner, therefore, preferred Special Civil Application No. 578 of 2024 with a prayer to quash and set aside order dated 23rd August, 2023 and to allow the Miscellaneous Applications preferred by the petitioner by directing the respondents to allow lump sum disallowance so far as administrative expenses are concerned and to confirm the deletion of interest expenses as per the order of CIT(A). 4.3 Learned advocate Mr. Shah for the petitioner-assessee submitted that a detailed chart was placed on record during the course of hearing of appeals before the Tribunal, however the Tribunal did not consider the direct decision of the coordinate Bench in assessee s own case for the previous Assessment Year and also did not consider the decision of this Court in assessee s own case in previous Assessment Year dismissing the appeal of the Revenue on disallowance of interest expenditure under Section 14A of the Act and confirming action of restricting the disallowance of administrative ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve expenses upto Rs. 10.00 lakhs and Rs. 15.00 lakhs for the respective Assessment Year for making disallowance under Section 14A of the Act and such orders passed by the coordinate Bench of the Tribunal are confirmed by this Court while dismissing the Tax Appeals of the Revenue being Tax Appeal Nos. 900-902 of 2018 and Tax Appeal No. 99 of 2019. 6.1 Admittedly, the Tribunal has not considered such decisions and only referred to and relied upon the submissions made by the authorised representative of the assessee to decide the issue for disallowance under Section 14A of the Act. In such circumstances, the impugned order of the Tribunal so far as it relates to Ground No. 1 of the Department s appeal and Ground No. 2 of the assessee s appeal as well as Ground No. 2 of the Cross Objections is required to be set aside and matter is required to be remanded to the Tribunal to decide such grounds afresh de novo. 7. The matter is accordingly remanded qua only these grounds before the Tribunal to be decided afresh. Special Civil Application as well as both the Tax Appeals are accordingly disposed of. 8. It is clarified that we have not gone into the merits of the matter and the Tribunal sha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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