ADURJEE & BROTHERS PRIVATE LIMITED,PUNE vs. DCIT CENTRAL CIRCLE-1(1), PUNE

This assessee’s appeal for A.Y. 2012-13 is directed against the CIT(A)- 11, Pune’s order dated 03/10/2019 passed in case No. PN/CIT(A)-11/DCIT Cen.Cir.1(1)/PN/228/2014-15 involving proceeding u/s. 143(3) of the Income Tax Act, 1961; in short "the Act”. Heard both the parties. Case file perused.

Learned counsel states at the outset he is only pressing for the assessee’s second substantive ground challenging correctness of both the lower authorities action making section 14A r.w. Rule 8D disallowance of Rs. Rs. 79,22,635/-(indirect expenditure) in relation to its exempt income from dividends and share of profit from partnership firms amounting to Rs.61,63,889/- and (-) Rs15600; respectively, coming to net sum of Rs.61,48,289/-.

Learned counsel invited our attention to the Assessing Officer’s detailed computation sheet Annexure – 1 that he had considered the assessee’s entire investments as against those only yielding exempt income. Faced with this situation and in light of this tribunal’s Special Bench decision in ACIT V/s Vireet Investments (P) Ltd. 82 taxmann.com 415 (Delhi- Trb.) (SB), we reject the Revenue’s vehement arguments supporting the impugned disallowance in principle and direct the assessing authority to frame afresh computation as per law in above terms. Ordered accordingly.

This assessee’s appeal is partly allowed for statistical purposes in above terms.