9911796707
TMI Blog2024 (10) TMI 650X X X X Extracts X X X X X X X X Extracts X X X X ..... of an assessment framed by Ld. Assessing Officer [AO] u/s 143(3) r.w.s 143(3A) & 143(3B) of the Act on 06-04-2021. 1.2 The grounds raised by the revenue read as under: - 1. The order of the learned CIT(A) is contrary to law and facts and circumstances of the case. 2. The Ld. CIT(A) erred in holding average value of only those investments will have to be taken from which the assessee derived exempted income during the year. 3. The ld. CIT (A) erred in observing that relied upon decision was not stayed / reversed, whereas in the relied upon case, the disallowance u/s 14A was invoked w.r.t. investments made in foreign companies only not Indian companies and for this reason the order was not challenged further. Hence the decision of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Appellant for tax in their return. 5. The NFAC, New Delhi / Commissioner of Income Tax (Appeals) ought to have appreciated that the TDS credit of Rs. 52,08,571/- are relatable to the undertaking whose income after demerger belongs to was included in the hands of the Appellant and hence the corresponding TDS should also have been given credit in the hands of the Appellant. As is evident, the common issue in cross-appeal is disallowance u/s 14A. The assessee also seeks TDS credit of demerged entity. Having heard rival submissions and upon perusal of case records, our adjudication would be as under. 2. Disallowance u/s 14A 2.1 The assessee being resident corporate assessee is stated to be wholly owned subsidiary of M/s Sundaram Finance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Lacs. It could be seen that the assessee did not respond to various notices issued by Ld. AO in this regard. The impugned disallowance was added to the income of the assessee and the assessment was framed. 2.4 The Ld. CIT(A), following various decision of Special Bench of Tribunal in Vireet Investments Pvt. Ltd. (82 Taxmann.com 415) directed Ld. AO to compute disallowance by considering only those investments which have yielded exempt income during the year. The same has led to cross-appeals before us. 2.5 The Ld. AR has referred to the decision of Hon'ble Delhi High Court in the case of Era Infrastructure India Ltd. (448 ITR 674) to submit that the amendment made by Finance Act, 2022 to Section 14A by inserting a non-obstante clause and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ound of assessee's appeal stand allowed to the extent of correct adoption of cost of investments. 3. TDS Credit 3.1 From para-7 of impugned order, it could be seen that the assessee claimed TDS credit of Rs. 68.43 Lacs. The amount of TDS credit as reflected in Form 26AS was Rs. 52.08 Lacs. The balance TDS credit of Rs. 16.35 Lacs was stated to be pertaining to income transferred to the assessee on account of demerger. Though the Ld. CIT(A) directed Ld. AO to allow credit of Rs. 52.08 Lacs after due verification, the remaining TDS credit was not considered owing to assessee's failure to submit relevant specific details by adducing the supporting evidences. Aggrieved, the assessee is in further appeal before us. 3.2 The Ld. AR has submitte ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
