OMPRAKASH BASANTAL GOENKA,MUMBAI vs. DCIT CEN CIR 2(4), MUMBAI

IN THE INCOME TAX APPELLATE TRIBUNAL “C”, BENCH MUMBAI BEFORE SHRI R.C. SHARMA, ACCOUNTANT MEMBER AND SHRI AMARJIT SINGH, JUDICIAL MEMBER. (Assessment Year: 2012-13) Mr. Omprakash Basantlal Goenka, Vs. Dy. Commissioner of 101, 10th Floor, Somerset House, Income-tax, Central Circle- Sofia College Lane, Warden Road, 2(4), Mumbai. Mumbai-400026, PAN No. : AAECPG3845J (Appellant) .. (Respondent) Assessee by None Revenue by Shri Kumar Padmapani Bora (D.R) Date of Hearing 23-01-2020 Date of Pronouncement 13/02/2020 O R D E R PER AMARJIT SINGH, J.M.

The assessee has filed the present appeal against the order dated 29-11- 2016 passed by the CIT(Appeals)-48, Mumbai relevant to the assessment year 2012-13. The assessee has raised the following grounds:

1. The Ld. CIT(Appeals) erred in confirming the addition made by Ld. D.C.I.T. on account of disallowance of Rs.1,47,11,057/- u/s 14A r.w.r. 8D.

2. The Ld. CIT(Appeals) erred in holding that expenses attributed towards earning exempt income even when there were no nexus.

3. The Ld. CIT(Appeals) erred in considering the facts that the major investment were made for acquiring strategic business stake.”

2. Brief facts of the case are that the assessee filed his return of income on 30-09-2012 declaring total income to the tune of Rs.6,91,34,050/- for the . assessment year 2012-13. The return was processed u/s 143(1) of the I.T. Act. Thereafter the case was selected for scrutiny. Notices u/s 143(2) and 142(1) were issued and served upon the assessee. During the year under consideration, the assessee has earned income under the head Business and Profession and Other Sources. The assessee has also earned income under the head Salary from M/s Mirah Decor Ltd. On verification, it was found that the assessee has earned the dividend income and long term capital gains which is exempt from tax which was claimed as exempt u/s 10(34) of the Act. The assessee has debited the interest on loan paid in a sum of Rs.7,88,64,921/-. The assessee has also shown its investment in a sum of Rs.33,18,79,749/-. The AO has applied the provision u/s 14A read with Rule 8D. Notice was given and after reply of the assessee, the expenditure to earn the exempt income was assessed in a sum of Rs.1,47,11,057/-. After some more disallowances, the income of the assessee was assessed in a sum of Rs.34,13,45,107/-. Feeling Aggrieved, the assessee filed an appeal before the CIT(Appeals) The CIT(Appeals) dismissed the appeal of the assessee, therefore, the assessee has filed the present appeal before us.