M/S. ARISTON CAPITAL ASSET HOLDINGS PVT. LTD.,,CHENNAI vs. ITO, CORPORATE WARD - 1 (4),, CHENNAI

आदेश/ O R D E R

PER S. JAYARAMAN, ACCOUNTANT MEMBER :

The assessee filed this appeal against the order of Commissioner

of Income Tax (Appeals)-1, Chennai in ITA No. 677/CIT(A)-1/2016-17

dated 25.01.2019 for assessment year 2013-14.

:-2-: ITA No. 1922/Chny/2019

was filed stating that the impugned order was misplaced by the

accountant without notice to the assessee which caused the belated filing

of the appeal. It was pleaded that the delay in filing the appeal may be

condoned and due decision may be rendered on the merits, in the interest

of justice.

in the business of energy management. While making the assessment for

assessment year 2013-14, the AO, inter alia, made disallowance u/s. 14A

r.w.r. 8D. Aggrieved, the assessee filed an appeal before the CIT(A). The

Ld. CIT(A) dismissed the appeal. Aggrieved against that order the

assessee filed this appeal. The case was heard through video

conferencing.

as a dividend income during the year towards which it has disallowed Rs.

1,23,250/- in the memo of income filed. However, the AO invoked section

14A r.w.r. 8D and made a further disallowance at Rs. 58,61,215/-. The

Ld. CIT(A) failed to appreciate that the provisions of section 14A r.w.r. 8D

had no application on the facts of the case and ought to have appreciated

:-3-: ITA No. 1922/Chny/2019

that the AO having not recorded satisfaction, the disallowance made

should have been deleted and therefore, pleaded that the assessee’s

appeal be allowed. Per contra, the Ld. DR inviting our attention to the

relevant portion of the order of the CIT(A) submitted that onus was on the

assessee to furnish breakup of interest expenditure disallowed by the

assessee and to substantiate as to how the amount disallowed u/s. 14A by

the assessee is in accordance with the provision. Since, the assessee has

not furnished specific details, the AO recorded due satisfaction, invoked

section 14A r.w.r. 8D and made the impugned disallowance. Therefore,

the Ld. CIT(A) dismissed the appeal and hence the Ld. DR submitted that

the order of the CIT(A) be confirmed.

material. The assessee earned dividend income of Rs. 1,16,49,826/-. The

assessee in its memo of income deducted Rs. 1,23,250/- towards

expenditure incurred for earning the exempt income. It is clear from the

orders of the lower authorities that the assessee has not specified as to

how it has arrived this quantum of disallowance. In the absence of specific

particulars, the AO duly recorded reason and invoked section 14A r.w.r. 8D

and made the impugned disallowance. Therefore, the onus is on the

assessee to furnish relevant material towards earning of exempt income,

breakup of the expenditure incurred by the assessee in relation to such

:-4-: ITA No. 1922/Chny/2019 exempt income and substantiate that the amount of disallowance worked

out by it is fair and reasonable. In the absence of such particulars, the AO

invoked section 14A r.w.r. 8D and made the impugned disallowance.

Therefore, on the above facts and circumstance, we are of the view that

in the interests of justice, this issue requires to be remitted back to the AO

for a fresh examination. The assessee shall furnish the relevant

particulars/materials in connection with the exempt income and comply

with the requirements of the AO in accordance with the law. The AO on

due examination of it and after giving due opportunity to the assessee,

shall determine the disallowance in accordance with law and pass a due

order.

statistical purposes.

Order pronounced on 06th January, 2021 at Chennai.

Sd/- Sd/- (वी दुगा� राव) (एस जयरामन) (V. DURGA RAO) (S. JAYARAMAN) लेखासद य/Accountant Member �या�यकसद य/Judicial Member

चे�नई/Chennai, 1दनांक/Dated: 06th January, 2021 JPV आदेशक*&�त3ल4पअ5े4षत/Copy to: 1. अपीलाथ)/Appellant 2. &'यथ)/Respondent 3. आयकरआयु6त ) अपील(/CIT(A) 4. आयकरआयु6त/CIT 5. 4वभागीय&�त�न�ध/DR 6. गाड�फाईल/GF