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2021 (11) TMI 97 - ITAT DELHIDeduction u/s 80IA - income on the business of running of Inland Container Depot (ICD) - business of ICD covered under the definition of infrastructure facilities - HELD THAT:- CIT (A) deleted the impugned addition made by the AO by way of disallowance made u/s 80IA by thrashing the facts at hand in the light of the decision rendered in case of Container Corporation of India Ltd. [2012 (5) TMI 260 - DELHI HIGH COURT], hence we find no scope to interfere into the same. So, ground no.1 of AYs 2013-14 & 2014-15 is determined against the Revenue. Disallowance u/s 14A r.w.r.8D - disallowance deleted on the sole ground that assessee company has not earned exempt dividend income from the investment during the year under consideration and as such, no disallowance can be made - HELD THAT:- Hon’ble Delhi High Court in case of Holcim India Pvt. Ltd. [2014 (9) TMI 434 - DELHI HIGH COURT] and Hon’ble Supreme Court in case of Godrej & Boyce Manufacturing Company Ltd. [2017 (5) TMI 403 - SUPREME COURT] have categorically held that, “when the assessee has not earned any dividend income forming part of the total income during the year under consideration, section 14A read with Rule 8D is not attracted.” Consequently, we find no scope to interfere into the deletion of disallowance made by the ld. CIT (A) u/s 14A read with Rule 8D. - Decided against revenue. Addition u/s 37 - proportionate disallowance of interest qua the amount made by the assessee to its subsidiary and sister concern on the ground that the same was not for business purpose - CIT (A) has deleted the addition by thrashing facts in the light of the submissions made by the assessee on the ground that when the AO has failed to establish a reasonable nexus between the borrowing fund and interest free advances, addition is not sustainable - HELD THAT:- CIT (A) brought on record the fact that the assessee was having surplus fund in its kitty. When the assessee was having surplus fund of ₹ 133.06 crores during the year under consideration, advancing of interest free loan of ₹ 35.42 crores to its subsidiaries is not to attract any disallowance on account of proportionate interest on advances made to the subsidiaries. So, ld. CIT (A) has rightly deleted the addition, hence ground no.3 of AY 2014-15 is determined against the Revenue. Disallowance of interest earned by the assessee company on FDR - HELD THAT:- We have perused the aforesaid findings which are strictly on facts in the light of the law laid down in case of CIT vs. Jaypee DSC Ventures Ltd.[2011 (3) TMI 309 - DELHI HIGH COURT] the ratio of which is that, “when a bank guarantee is furnished as a condition precedent to entering into a contract and further it has to be kept alive to fulfill certain obligations and the fixed deposits have not been made out of the surplus funds available with the assessee, the same is to be treated as business income.” Since judgment of by Hon’ble jurisdictional High Court in case of CIT vs. Jaypee DSC Ventures Ltd. (supra) is squarely applicable to the facts of the case at hand, ld. CIT (A) has rightly deleted the addition. - Decided in favour of assessee.
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