9911796707
TMI Blog2013 (10) TMI 1581X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal. 3. We will first take up assessee s appeal in ITA No.2891/Mum/2001. Ground no.1 relates to the disallowance of expenditure on telephone at guest house at Rs.31,44,435/-. This issue has been discussed by the Assessing Officer at para 6 on page 3 of his order and the CIT(A) has considered this grievance of the assessee at para 3 on page 2 of his order. Similar disallowance has been considered by the Tribunal in the assessee s own case in ITA No.2200/Mum/2000 at para 3 and 4 of its order. As the facts and issues are identical, respectfully following the decision of the Tribunal, the findings of the CIT(A) are confirmed. Ground no.1 is accordingly, dismissed. 4. Ground no.2 relates to the disallowance of expenditure of Rs.12,74,037/- incurred on community welfare and rural development. This issue has been discussed by the Assessing Officer at para 9 on page 5 of his order and the CIT(A) has considered this grievance at para 6 on page 3 of his order. Similar disallowance has been considered by the Tribunal in the assessee s own case in ITA No.2200/Mum/2000 at para 5 on page 3 of its order, wherein the Tribunal has followed its own order for A.Ys. 1990-91 to 1994-95. Facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue has been considered by the Tribunal in ITA No 2200/Mum/2000 at para 32 on page 11 of its order, wherein the Tribunal has followed its own order in the assessee s own case for A.Y. 1994-95 in ITA nos. 4265 4892/Mum/98. Facts being identical, respectfully following the decision of the Tribunal in assessee s own case, findings of the CIT(A) are confirmed. Part (b) is accordingly dismissed. c) This relates to computation of indirect cost attributable to trading exports inclusive of sales and administration overheads, interest and brokerages. This part has not been pressed before us by the learned senior counsel and is therefore dismissed. Ground nos. 5 6 are partly allowed. 8. Ground no.7 relates to the addition of an estimated amount of Rs.25,00,000/- out of conference expenditure by treating the same as entertainment expenditure. This issue has been discussed by the Assessing Officer at para 7 on page 4 of his order and the same has been considered by the CIT(A) at para 4 on page 2 of his order. Similar disallowance was considered by the Tribunal in assessee s own case in ITA No. 2890/Mum/2001 at para 73 to 76 on page 21 and 22 of its order, wherein the Tribunal has directed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red by the Tribunal in assessee s own case in ITA No.2200/Mum/2000 at para 10 on page 5 of its order, wherein the Tribunal has followed the decision of the Tribunal in assessee s own case for A.Ys. 1990-91 to 1994-95. Respectfully following the decision of the Tribunal, we confirm the findings of the CIT(A). Ground no.3 with its sub grounds is dismissed. 13. Ground no.4 relates to the deletion of the addition made on account of expenditure on construction of jetty at Gujarat Cement Plant Rs.9,58,53,000/-. This issue has been discussed by the Assessing Officer at para 15 on page 8 of his order and the same has been considered by the CIT(A) at para 10 page 4 of his order. Similar disallowance was considered by the Tribunal in the assessee s own case in ITA no.2863/Mum/2000 at para 42 and 43 on pages 14 15 of its order, wherein the Tribunal has followed its findings in assessee s own case for A.Y. 1994-95 in ITA Nos. 4265 4892/Mum/98. Facts and issues being identical, respectfully following the decision of the Tribunal, findings of the CIT(A) are confirmed. Ground no.4 is accordingly dismissed. 14. Ground no.5 with its sub grounds relate to deletion of the addition of Rs.10,75,11,000/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of Rs.5,05,59,889/- being expenses incurred on setting up of Nasik Glass Works. This issue has been discussed by the Assessing Officer at para 22 page 17 of his order and the CIT(A) has considered this grievance at para 19 page 13 of his order. Similar addition was considered by the Tribunal in the assessee s own case in ITA No.2200/Mum/2000 at para 25 26 on page 9 of its order. Facts and issues being identical, respectfully following the findings of the Tribunal in the assessee s own case in earlier assessment years, findings of the CIT(A) are confirmed. Ground no.8 is accordingly dismissed. 18. Ground no.9 relates to the deletion of the addition of Rs.4,01,56,563/- on account of interest on commitment charges in respect of borrowings made for Nasik Glass Works. This issue has been considered by the Assessing Officer at para 23 on page 17 of his order. The CIT(A) has deleted the additions made by the Assessing Officer at para 20 on page 14 of his order. Similar addition was considered by the Tribunal in ITA No.3533/Mum/2001 for A.Y. 1996-97 in assessee s own case at para 98 and 99 on page 26 of its order, wherein the Tribunal followed its own order in the case of the assessee fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... casion to consider similar grievance in assessee s own case in ITA No.2200/M/2000. The Tribunal considered this issue at para 29 on page 10 of its order. We find that the Tribunal has followed the earlier orders of the Tribunal in assessee s own case in ITA No.4265 4892/Mum/98 as also in ITA No. 987/Mum/98. Facts and issues being identical, respectfully following the decision of the Tribunal in assessee s own case, ground no.13, 14 15 are accordingly dismissed. 23. Ground no.16 relates to the deduction u/s. 80M of the Act at Rs.92,73,342/-. This issue has been considered by the Assessing Officer at para 28 on page 26 of his order. The Assessing Officer found that the assessee has claimed deduction u/s. 80M amounting to Rs.18,54,66,851/-. The assessee was asked to explain net income after considering the expenditure incurred on this account including that of borrowed funds, which may have been invested in the shares of various companies on which dividend was received. The assessee explained that investment in shares were made out of companies own funds and not any borrowed funds. It was further stated that no specific expenditure was incurred in earning dividend income. The Assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee has earned Rs.2,45,41,562/- as interest from tax free bonds, which the assessee has claimed to be exempt u/s. 10(15) of the Act. The Assessing Officer was of the firm belief that certain expenditure deserves to be allocated for earning this exempt income. The Assessing Officer made an ad hoc disallowance of 5% as expenditure for earning the exempt income of Rs.2,45,41,562/-. The CIT(A) has considered the grievance of the assessee at para 28 on page 19 of his order and after considering the facts and submissions of the assessee and the nature of income, the CIT(A) held that no expenditure would be required for earning interest on tax free bonds and deleted the disallowance made by the Assessing Officer. Aggrieved by this the revenue is before us. 27. The learned DR strongly submitted that in pursuance to section 14A of the Act, reasonable disallowance has to be made for earning exempt income. The learned senior counsel relied upon the findings of the CIT(A). 28. We have carefully perused the orders of the lower authorities and the rival submissions. We agree with the submissions of the learned DR that reasonable disallowance needs to be made for earning this exempt income. In our ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
