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Income Tax Appellate Tribunal, “B” BENCH, PUNE
Before: SHRI ANIL CHATURVEDI & SHRI S.S. VISWANETHRA RAVI
आदेश / ORDER
PER S.S. VISWANETHRA RAVI, JM :
This appeal by the assessee against the order dated 16-06-2017 passed by the Commissioner of Income Tax (Appeals)-5, Pune [„CIT(A)‟] for assessment year 2012-13.
Ground Nos. 1 to 3 raised by the assessee questioning the action of CIT(A) in confirming the disallowance made u/s. 14A of the Act r.w. Rule 8D(2)(iii) of the Rules in the facts and circumstances of the case.
Heard both parties and perused the material available on record. We find that the issue raised in ground Nos. 1 to 3 are covered by the order of this Tribunal in assessee‟s own case for A.Y. 2010-11 vide its order dated 08-08-2018. On perusal of the said order at para No. 4, the Tribunal held that the disallowance should be restricted to the extent of expenditure debited to profit and loss account and remanded the issue therein to the file of AO for its fresh verification to examine the expenditure relatable to earning exempt income. Following the same, we remand the issue raised in ground Nos. 1 to 3 to the file of AO for its fresh consideration. The assessee is liberty to file all the evidences before the AO in support of its claim. Thus, ground Nos. 1 to 3 raised by the assessee are allowed for statistical purpose.
4. Ground Nos. 4 and 5 raised by the assessee challenging the action of CIT(A) in making further additional disallowance of Rs.67,922/- under Rule 8D(2)(i) without providing reasonable opportunity. Before CIT(A), the assessee submitted that in the first place no expenditure incurred in earning exempt income. The CIT(A) observed in his order at para 4.4.5, that the assessee himself admitted that these are direct expenses to earn exempt income. It is clear from the submission of assessee before the CIT(A) at page 12, that no expenditure was incurred. Therefore, no enhancement is called for under Rule 8D(2)(i) of the Rules. Thus, ground Nos. 4 and 5 raised by the assessee are allowed.
Ground No. 6 is general in nature, hence, requires no adjudication.
In the result, the appeal of assessee is allowed for statistical purpose.
Order pronounced in the open court on 28th January, 2020.
Sd/- Sd/- (Anil Chaturvedi) (S.S. Viswanethra Ravi) JUDICIAL MEMBER ACCOUNTANT MEMBER ऩुणे / Pune; ददनाांक / Dated : 28th January, 2020 RK आदेश की प्रनिलऱपप अग्रेपषि / Copy of the Order forwarded to : अऩीऱाथी / The Appellant. 1. प्रत्यथी / The Respondent. 2. आयकर आयुक्त (अऩीऱ) / The CIT(A)-5, Pune 3.
The Pr. Commissioner of Income Tax-4, Pune ववभागीय प्रतततनधध, आयकर अऩीऱीय अधधकरण, “बी” बेंच, 5. ऩुणे / DR, ITAT, “B” Bench, Pune. गार्ड फ़ाइऱ / Guard File. 6. //सत्यावऩत प्रतत// True copy // आदेशानुसार / BY ORDER,
तनजी सधचव / Private Secretary, आयकर अऩीऱीय अधधकरण, ऩुणे / ITAT, Pune