DCIT CEN CIR 1(4), MUMBAI vs. EVERSMILE CONSTRUCTION COMPANY P.LTD, MUMBAI

Order u/s.254(1)of the Income-tax Act,1961(Act) �� केकेकेके अनुसार अनुसार अनुसार PER RAJENDRA, AM- अनुसार राजे�� �� �� लेखा सद�य सद�य राजे लेखा लेखा लेखा सद�य सद�य राजे राजे Challenging the order dt.24.10.14 of CIT(A)-36, Mumbai the AO has filed the present appeal. Assessee-company, engaged in the business of development and construction of property filed its return of income on 9.9.2010 declaring its total income at Rs.6.39 crores. The AO completed the assessment u/s. 25.3.13 u/s. 143(3) of the Act determining the income of the assessee at Rs.7.75 crores. 2.Effective Ground of appeal is about restricting the disallowance u/s. 14A r.w.Rule 8D of the IT Rules,1962,(Rules).During the assessment proceedings the AO made a disallowance of Rs.45.22 lakhs invoking the provisions of section 14A r.w.r 8D of the Rules. Aggrieved by the order of the AO,the assessee preferred an appeal before the FAA. Before him it was argued that in the earlier year the then FAA had confirmed the disallowance at Rs.7.28 lakhs as offered by the assessee itself. Following the order of his predecessors the FAA restricted the disallowance to 10% of the total disallowance i.e. Rs.8.23 lakhs.

3.Before us,the Departmental Representative( DR) supported order of the AO.The Authorised Representative (AR)stated that the Tribunal had decided the identical issue in favour of the assessee,while deciding the appeal for the AY.2009-10.

7630/M/14 Eversmile