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TMI Blog2024 (6) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... n favour of assessee. TDS u/s 195 - Disallowance u/s 40(a)(i) on account of commission paid to non- resident agent for export sales - HELD THAT:- The issue is squarely covered by the order of the co-ordinate bench in the assessee s own case. CIT (A) has deleted the disallowance by relying upon the order passed in the assessee s own case for preceding years. It comes up that in assessee s own case in the preceding assessment years AY 2010-11 AY 2013-14 [ 2021 (9) TMI 760 - ITAT DELHI] the issue has been decided in favour of assessee and CIT(A) has relied same. No distinguishing fact is cited by Ld. DR. In view of above order of CIT(A) deleting the addition made by AO needs no interference. Disallowance u/s 14A r.w.r.8D - HELD THAT:- As considering the fact that during the year there was no dividend income, no disallowance is warranted u/s 14A of the Act. Delayed payment of contribution of ESI - CIT(A) had deleted same on basis that the same were deposited before the due date for filing return u/s 139(1) - HELD THAT:- Now the issue stands settled in favour of revenue by the judgment of Checkmate Services (P.) Ltd. [ 2022 (10) TMI 617 - SUPREME COURT] As submitted that the cheque in r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ereinafter referred to as the Ld. AO). 2. Heard and perused the records. 3. The first issue is out of addition of Rs. 58,03,650/- on account of disallowance of royalty payment. Ld. Counsel has submitted that the issue is squarely covered by the order of the Tribunal in the assessee s own case. It comes up from records that in the present case, the AO made the addition of Rs. 58,03,650/-on account of disallowance of royalty payment made by assessee. CIT (A) has deleted the said addition by relying upon the order passed in the assessee s own case for preceding years. The similar issue has been decided by coordinate benches in the favour of the assessee in assessee s own case in the preceding assessment years. The particulars cited are that for AY 2005-06, AY 2006-07 2007-08 vide ITA No. 637/Del/2013, ITA No. 638/Del/2013 and ITA 4373/Del/2013 respectively, order dated. 14.10.2014, copy of which is made available in PB Pg. 127-142, with relevant part being PB Pg. 140-141, Para 9. In AY 2008-09 vide ITA No. 4776/Del/2013, order dated 14.11.2014, copy made available in PB Pg. 143-145 and relevant part being PB Pg. 144 Relevant Para 4. In AY 2010-11 AY 2013-14 bearing ITA 3894/Del/2017 I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sallowance made by was under section 14A read with rule 8D. In this regards, it is submitted by Ld. Counsel, that AO via note sheet dated 23.11.2017 had asked assessee why the disallowance under section 14A read with rule 14A should not be made. In response to above, assessee via reply dated 13.12.2017 (PB Pg 82-85) submitted that net worth of assessee is Rs, 241.08 crores and non-current investment is Rs. 24.21 crores. Hence, assessee s own funds far exceeds the investment made. Consequently, no disallowance is warranted under section 14A of the Act. It was further submitted that assessee has not earned any dividend income during the current year. It was also submitted that assessee not incurred any expense to earn the exempt income. Before CIT(A), assessee reiterated the submissions made before the AO and CIT(A) considering the submissions made by the assessee, deleted the addition of Rs. 4,56,145/- made under section 14A r.w.r 8D(ii) holding that assessee own funds are adequate enough for making investment capable of earning tax free income. CIT(A) also restricted the disallowance under section 14A r.w.r 8D(iii) to Rs. 5,41,887/- holding that no dividend income is earned by asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the purpose of partnership firm and claimed as expense by the assessee and this contention of assessee is supported by Ld. Counsel by placing reliance on the RAKESH K. PATEL (HUF) VERSUS DCIT, CIRCLE-1 (2) , BARODA, 2019 (7) TMI 1545 - ITAT AHMEDABAD, Dated.- July 23, 2019-, where in it is held by Ahmadabad Bench; 6. We have perused the order of the lower authorities. We find that the assessee has earned dividend income of ₹ 32,155/- on investment in mutual funds. The assessee has also claimed exempt income of ₹ 38,66,171/- from the partnership firm in which the assessee is a partner. The investment in mutual fund does not per se call for any separate administrative expenditure having regard to the fact that the mutual funds are run by professional who separately charges administrative expenses from the assessee for management of the funds. Likewise, investments in partnership firm would not attract disallowance under s. 14A unless it is shown by the AO that certain expenses howsoever small have been incurred for the purposes of partnership firm and claimed in the assessee s accounts. No such observation is found in the order of the AO. Needless to say application of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich is before due date of 21.02.2015. However, we are of considered view that due date to reckon is as per the respective statute and due date of filing return under the Act is not of any consequence. Thus, this issue needs a fresh consideration at the end of CIT(A). Accordingly, restored to CIT(A). 9. The fifth issue is out of addition of Rs. 6,671/- on account of alleged understatement of Income. AO made addition holding that there was difference in income declared and income as 26AS. In this regards, it is submitted, by Ld. Counsel that assessee received Rs. 10,750/- from Edge-Gro industries during AY 2015-16 and assessee received Rs. 5,571/- in AY 2014-15. However, customer deducted the TDS on entire amount of Rs. 16,321/- during AY 2015-16. Similarly, assessee received Rs. 2,162/- from Pinnacle engineers during AY 2015-16 and assessee received Rs. 1,110/- in AY 2014-15. However, customer deducted the TDS on entire amount of Rs. 3,262/- during AY 2015-16. Hence, the income of Rs. 6,671/- (5,571 + 1,110) was declared by assessee in the previous assessment year. However, Edge gro and Pinnacle deducted the TDS on the entire interest amount of Rs. 16,321 in the AY 2015-16. We are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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