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2019 (5) TMI 1960 - ITAT CHANDIGARHAdmission of additional claim - Disallowance u/s 14A - voluntary disallowance u/s. 14A made by the assessee at the time of filing of return of income - Whether the CIT(A) is right in giving benefit of the amount of tax which the assessee has voluntarily paid ? - applicability of amendment to Section 14A - Whether CIT(A) is right in entertaining the plea of the assessee against the judgment of in the case of Goetze (India) Ltd. [2006 (3) TMI 75 - SUPREME COURT] AND Interpreting the amendment introduced w.e.f 02/06/2016 prospectively. HELD THAT:- The appellate authorities are entitled to exercise their jurisdiction to consider the additional claim.The assessee cannot be made to suffer inadvertent mistake made at the time of filing of the return i.e; in case the assessee pays the tax which is not required to pay as per the Act, he can always reclaim the amount. Owing to the above interpretation, we hold that the Ld. CIT(A) acted in a judicious manner and hence we decline to interfere with the order of the Ld.CIT(A) on these issues. Applicability of amendment to Section 14A from 02/06/2016 - We are the view that due to the fact that there is a specific date mentioned regarding the applicability of the amended provisions hence the same cannot be said to be retrospective. The Assessing Officer is directed to compute the disallowance as per the rules applicable as on the date. Regarding the ruling that the Assessing Officer shall account on the those investments which have yielded exempt income, we find strength by the orders of the special Bench of ITAT in the case of Vreet Investment Pvt. Ltd. [2017 (6) TMI 1124 - ITAT DELHI] and also the order in the case of Prime Property Development Corp Pvt. Ltd. [2017 (11) TMI 2000 - ITAT MUMBAI]. We direct the Assessing Officer to compute the disallowance accordingly . Capitalization of interest under section 36(1)(iii) - As we find that the assessee’s own resources are to the tune of 321.17 Crores which shows the sufficiency of interest free funds to meet the expenses. We rely on the judgments in the assessee’s own case wherein the judgment of Hon’ble Jurisdictional High Court in the case of Abhishek Industries [2006 (8) TMI 123 - PUNJAB AND HARYANA HIGH COURT] which was referred by the Assessing Officer in his order has been distinguished. Further in the case of Bright Enterprises [2015 (11) TMI 342 - PUNJAB & HARYANA HIGH COURT] clearly held that if interest free funds are available the a presumption would arise that the investments would be out of interest free fund generated or available with the company. Hence no disallowance under section 36(1)(iii) is called for. The order of the Ld. CIT(A) on this ground is confirmed.
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