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2010-11 contest separate orders of lower authorities on certain common grounds of appeal and hence, taken up together for the sake of convenience & brevity. First, we take up cross-appeals for AY 2009-10 which is against the order of Ld. Commissioner of Income Tax (Appeals)-58 Mumbai [CIT(A)], Appeal No. CIT(A)-58/301/3013-14 dated 23/01/2017. 1.2 The grounds raised by the revenue reads as under: -

1. Whether on the facts and circumstances of the case, the learned CIT(A) failed to appreciate the fact that the sale consideration shown by the assessee company is less than the Stamp duty valuation in contravention of the provision of Sec. 50C of the I.T. Act?

3.2 As evident from grounds in cross-appeals, the following issues crop up from the orders of lower authorities: -

           No.   Nature of Additions                          Amount (Rs.)
           A.    Non-transfer Pricing Grounds
           1.    Disallowance u/s 14A                         Rs.117.90 Lacs
           2.    Capital gains u/s. 50C of the Act            Rs.342.23 Lacs
           B.    Transfer Pricing Grounds
           3.    TP adjustment on Share Application Money     Rs.160.09 Lacs

VOLTAS LIMITED Assessment Years 2009-10 & 2010-11 3.3.4 So far as the merits of the case are concerned, we find that this issue was restored by Tribunal to the file of learned AO in AY 2008-09 vide para 4.3.4 of ITA No. 1667/Mum/2012 order dated 08/07/2016, wherein learned AO was directed to examine the sufficiency or correctness of suo- moto disallowance made by the assessee having regards to assessee's accounts and explanations and proceed further after recording speaking reasons for non-satisfaction. We note that, in this AY, learned AO has already rejected the assessee's working. Nevertheless, with a view to enable revenue to take consistent stand in the matter, we restore the matter back to the file of learned AO on similar lines. The learned AO is directed to reappreciate the disallowance made by the assessee and invoke Rule 8D only if not satisfied with assessee's working of disallowance. It is made clear that if the disallowance is computed in terms of Rule 8D(2)(iii) then apart from the directions of Ld. CIT(A) to exclude certain investments, those investments which have not yielded any exempt income during the year under consideration would also be excluded as per the decision of Delhi Tribunal (Special Bench) rendered in ACIT Vs. Vireet Investment (P.) Ltd. [82 Taxmann.com 415]. Accordingly, Ground No.1 of assessee's appeal may be treated as partly allowed for statistical purposes. 3.4.1 Capital gains u/s 50C of the Act The assessee reflected capital gains from sale of certain Land & Building situated at Sangareddy, Hyderabad. Upon perusal of details, it transpired that the assessee sold freehold land admeasuring 11 acres along with building to Sri Shiva Sai Constructions [SSSC] vide Sale Deed dated VOLTAS LIMITED Assessment Years 2009-10 & 2010-11 18/07/2008 for aggregate consideration of Rs.325 Lacs. This Land and Building formed part of fixed assets. Accordingly, the sales proceeds of Rs.325 Lacs were apportioned in the following manner: -

Cross Appeals for AY 2010-11

4. Facts as well as issues are more or less pari-materia the same in this AY. The assessee has been assessed u/s 143(3) r.w.s.144C(3) on 30/03/2014 and saddled with identical additions / adjustments. Therefore, our observation, conclusion as well as adjudication as for AY 2009-10 shall mutatis-mutandis apply to this year also. The issue of disallowance u/s 14A, which is subject matter of assessee's appeal, stand restored to Ld. AO on similar lines. Ground-2 challenges TP adjustment on account of Share Application money. This ground stands allowed. The assessee's appeal stand partly allowed. Ground Nos. 3 & 4 of revenue's appeal, being connected to Ground No.2 of assessee's appeal, stand dismissed. 5.1 In Ground No. 1, the revenue is agitating the relief granted by first appellate authority u/s 50C of the Act with respect to sale of Nala Land VOLTAS LIMITED Assessment Years 2009-10 & 2010-11 at Thane, Maharashtra. During assessment proceedings, it transpired that the assessee on 01/04/2009, entered into development agreement with respect to 3950 Sq. Mtr. Sanad land bearing Survey No. 526 of Village Pachapakhadi, Taluka and District at Thane, Maharashtra with M/s Sheth Developers Ltd. for consideration of Rs.255.10 Lacs which was subsequently reduced to Rs.238.17 Lacs due to delineation of land of 262.12 Sq. Mtrs. The said land was stated to be purchased in the year 1961 for Rs.7.37 Lacs and the indexed cost of the same was worked out to Rs.46.61 Lacs. The assessee offered Long Term Capital Gain of Rs.191.56 Lacs from this transaction. Since the reckoner value of land worked out to be Rs.461.14 Lacs, Ld. AO proceeded to apply the provisions of Section 50C disregarding assessee's contention that there were negative covenants with the property as half the unearned revenue was liable to be shared by the buyer of the property with the Government and therefore, the sale consideration was bound to be below the reckoner value. However, disregarding the same, Ld. AO, invoking provisions of Section 50C, enhanced the gains by Rs.222.96 Lacs.