TMI Blog2018 (9) TMI 604X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of S. A. Builders [2006 (12) TMI 82 - SUPREME COURT]. The Tribunal noted that undisputedly the loans and advances were given by the assessee to the subsidiary companies for the purpose of their business and there was no dispute that such advances were utilized by the subsidiaries for their businesses. No question of law in this regard therefore arises. Claim of depreciation on the leased as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot require consideration. Disallowance u/s 14(A) - Held that:- Tribunal had noted that the assessee had sufficient interest free funds for making investment in assets earning tax free income. It was in this background that the Tribunal deleted the disallownace but apportioned ₹ 2 lacs for administrative expenses. Here also no question of law arises therefore, tax appeal is dismissed. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tified in restricting the disallowance of ₹ 46,35,567/under Section 14A of the Act to the extent of ₹ 2,00,000/? ( D) Whether the Appellate Tribunal has erred in not following the decision of the Hon'ble Supreme Court in the case of Maxopp Investment Ltd vs. CIT, New Delhi, which has applied the theory of apportionment of expenses (including interest) ? 2. The fist q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inable. Tribunal in the impugned judgment allowed such depreciation, inter alia, on the ground that the transaction was genuine. The assessee had demonstrated ownership of the assets, genuineness of the lease transaction, user of leased asset for the purpose of the business of earing lease rental. Such lease rental was accepted by the Assessing Officer and taxed the same. 4. Quite apart from su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallownace under Section 14(A) of the Act to ₹ 2 lacs as compared to much larger disallowance made by the Assessing Officer. In this context the Tribunal had noted that the assessee had sufficient interest free funds for making investment in assets earning tax free income. It was in this background that the Tribunal deleted the disallownace but apportioned ₹ 2 lacs for administrative ..... X X X X Extracts X X X X X X X X Extracts X X X X
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