CEAR INDIA FINANCE PVT. LTD.,NEW DELHI vs. ITO, WARD -5(4), NEW DELHI

The aforesaid appeal has been filed by the assessee against impugned order dated 26.5.2017, passed by Ld. CIT(Appeals)-2, New Delhi for the quantum of assessment passed u/s 154/143(3) for the assessment year 2012-13. In the grounds of appeal assessee has raised following grounds:-

“Ground No. 1: The Ld. CIT (A)-2 in confirming the order passed by the Ld. Income Tax Officer, Ward 5(4), New Delhi (hereinafter referred to as “learned AO”) has erred in law and in the fact & circumstances of the case by passing the assessment order dated 17th February 2016 under section 154/143(3) of the Act and assessing the total income of the appellant at Rs. 15,11,003 and thereby raising a demand of Rs. 4,37,780. Ground No. 2: The learned CIT(A) has erred on facts and in law in assessing the total income at Rs. 15,11,003 under section 115JB of the Act thereby disallowing expenditure under section 14A amounting to Rs. 15,23,336 on the basis of the change in opinion (observation from the audit party) which cannot be called a 'mistake apparent from records’ under the provisions of section 154 of the Act. The appellant contends that the disallowance made by the learned CIT(A) should be deleted. Ground No. 3: The learned CIT(A) erred in applying rule 8D while calculating the expense incurred in relating to the earning exempt income to be disallowed under the provisions of the Act. Ground No. 4: On the facts and circumstances of the case and in law, the learned CIT(A) erred in levying interest u/s 234B and 234C of the Act on the disallowances made in the assessment order.”