ADHIVITIYA PROPERTIES LTD,MUMBAI vs. CIT-53, MUMBAI

Instant appeal by the assessee is directed against the order dated 29th January 2015, passed by the learned Commissioner (Appeals)–53, Mumbai, for the assessment year 2010–11.

Effective grounds raised by the Department are as under:–

“1. On the facts and circumstances of the case and in law the Learned CIT(A) 53 has erred in confirming the following disallowances: a. Disallowance under rule 8D(2)(i) of Rs. 33,93,833/- (Rs. 56,82,506/- (disallowance calculated by Ld. CIT(A) Less Rs.

2 Adhivitiya Properties Ltd.

22,88,673/- disallowance already offered by the appellant) u/s 14A of the Act. a. Disallowance of 50% of administrative expenses u/s rule 8D(2) (iii) amounting to Rs. 37,704/- u/s 14A of the Act. b. Disallowance of differential interest of 3% between interest paid of 15 % to Ackruti City Limited and interest received of 12% from Gandhi Adhivitiya, a firm in which the Appellant is a partner.

2. The Ld. CIT(A) had also grossly erred in stepping into the shoes of the LAO for making the calculation of disallowance u/s 14A after finding merit in the plea of the appellant that the LAO had not given any cogent reason for rejecting the working of the suo-moto disallowance offered by the Appellant. Appellant pleads that the act of the Ld. CIT(A) is illegal and void ab-initio.”