Director Of Income Tax (International ... vs M/S Oman International Bank, S.A. O. G. ... on 25 April, 2016
5 It is to be noted that this is not an advance given by the assessee in the
ordinary course of busies but the said amount was given by the assessee to its
employees; therefore, the burden is cast upon the assessee to establish that the
amount has really gone bad and the decision of writing off of the said amount is
a bonafide and honest decision and not whimsical or fanciful as observed by the
jurisdictional High Court in the case of Oman International Bank SAOG (supra).
Since the assessee has failed to bring any material on record to show that even
prima facie that this amount has become irrecoverable and the decision of
writing off of the said amount is honest and bonafide; accordingly, we do not find
any error or illegality in the order of the ld CIT(A) on this issue. The ground
raised by the assessee is accordingly dismissed
4
ITA No. 477/Mum/2010
(Asst Year 2004-05 )
6 Ground of appeal no.2 relates to disallowance of Rs. 15,95,296/- u/s 14A.
6.1 We have heard the ld AR of the assessee and the ld DR and considered the
relevant material on record. The Assessing Officer has disallowed the interest
expenditure of Rs. 6,76,394/- being the proportionate of the total interest
expenditure to earn the dividend income by applying provisions of sec 14A.
6.2 On appeal, the ld CIT(A) issued show cause notice for enhancement of the
disallowance made u/s 14A based on Rules 8D and in light of the decision of the
Special Bench of the Tribunal in the case of Daga Capital Management P Ltd
reported in 26 SOT 603. Accordingly, the CIT(A) directed the Assessing Officer to
enhance the disallowance to Rs. 15,95,296/-.