TASHI INDIA LIMITED,NAGPUR vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCL-2, NAGPUR
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Income Tax Appellate Tribunal, NAGPUR “SMC” BENCH : NAGOUR
Before: SHRI SATBEER SINGH GODARA
This assessee’s appeal for assessment year 2014-
2015, arise against the National Faceless Appeal Centre [in
short the “NFAC”] Delhi’s Din and Order No.ITBA/NFAC/S/
250/2022-23/1050411553(1) dated 04.03.2023, in
proceedings u/s.143(3) of the Income Tax Act, 1961 (in short
“the Act”).
Heard both the parties. Case file perused.
The assessee’s sole substantive grievance herein
challenges correctness of both the learned lower authorities
action making sec.14A r.w. Rule 8D disallowance of
Rs.3,61,731/- inter alia involving proportionate interest
2 ITA.No.98/NAG./2023
expenditure of Rs.3,45,402/- and administrative expenditure
of Rs.43,702/-; respectively. There is no dispute that the
assessee had indeed derived dividend income of Rs.1,47,475/-
in the relevant previous year. It had suo motu disallowed an
amount of Rs.27,373/-.
I have given my thoughtful consideration to the
vehement rival stands against and in support of the impugned
disallowance. The assessee’s first and foremost contention
raised during the course of hearing is that it had non-interest
bearing funds including share capital with reserve and surplus
totaling to Rs.8,44,78,055/- as against the corresponding
investments made of Rs.87.40 lakhs yielding the impugned
exempt income(s).
Learned DR could hardly dispute the assessee’s
foregoing fund position as per it’s balance-sheet paper book
page-18. Faced with this situation, I quote CIT vs. HDFC Bank
Ltd., [2014] 49 taxmann.com 335 (Bom.) to delete the
impugned proportionate expenditure disallowance of
Rs.3,45,402/-.
The factual position is found to be altogether
different so far as the impugned administrative expenditure
disallowance made by both the learned lower authorities
amounting to Rs.43,702/- is concerned. Learned counsel has
not been able to substantiate the corresponding pleadings of
3 ITA.No.98/NAG./2023
having incurred no expenditure qua the exempt income
herein. There would not be any dispute that this last head of
administrative expenditure disallowance is of indirect nature
which requires the assessee to plead and prove all the relevant
facts in order to claim that no such amount has been spent/
incurred in the relevant previous year. I accordingly reject the
assessee’s instant latter substantive ground in very terms.
Necessary computation shall follow in consequential
proceedings as per law.
This assessee’s appeal is partly allowed in above
terms.
Order pronounced in the open Court on 15.05.2024.
Sd/- [SATBEER SINGH GODARA] JUDICIAL MEMBER Pune, Dated 15th May, 2024
VBP/-
Copy to
The appellant 2. The respondent 3. The Pr. CIT, Nagpur concerned 4. D.R. ITAT, “Nagpur-SMC” Bench, Nagpur. 5. Guard File.
//By Order//
//True Copy //
Sr. Private Secretary, ITAT, Pune Benches, Pune.
