GEOJIT INVESTMENT SERVICES LTD. Vs. ASSISTANT COMMISSIONER OF INCOME TAX
INCOME TAX APPELLATE TRIBUNAL
Geojit Investment Services Ltd.
ASSISTANT COMMISSIONER OF INCOME TAX
Click here to view full judgement.
Chandra Poojari, Member (A) -
(1.) CHANDRA Poojari, Accountant Member -This appeal filed by the assessee is directed against the order dated 23 -01 -2014 passed by the Ld. CIT(A) -II, Kochi for the assessment year 2008 -09.
(2.) THE first ground in the appeal for our consideration is with regard to the disallowance of Rs. 5,60,565/ - u/s. 14A of the I.T. Act. The brief facts of the case are that during the assessment year under consideration, the cumulative investment in the mutual funds at Rs. 3,20,75,000/ - and the assessee earned dividend income of Rs. 5,46,453/ -. The assessee also claimed expenses incurred for earning the dividend income at Rs. 5000/ -. However, the Assessing officer was of the opinion that it is not correct and thus, he invoked the provisions of sec. 14A read with Rule 8D of the I.T. Rules and thereafter disallowed Rs. 5,60,565/ -. On appeal, the CIT(A) confirmed the same. Against this, the assessee is in appeal before us.
(3.) THE Ld. AR submitted that the assessee is having enough own funds in the form of share capital, reserves in surplus. More so, in the assessment year under consideration, the assessee earned profit of Rs. 2,53,25,000/ - and incremental investment is only Rs. 1,36,00,000/ - and it cannot be presumed that investment in the mutual funds is out of borrowed funds. He drew our attention to the balance sheet and assets and liabilities as on 31 -03 -2008 to explain the above position. He also drew our attention to the profit and loss account as on 31 -03 -2008. According to the Ld. AR, even otherwise computation of the disallowance u/s. 14A is not correct. The Assessing officer considered the gross current assets instead of net current assets while applying the formula under Rule 8D of I.T. Rules. The Ld. AR also submitted that the disallowance is as per assessee's calculation.;
Copyright © Regent Computronics Pvt.Ltd.