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TMI Blog2021 (2) TMI 1366X X X X Extracts X X X X X X X X Extracts X X X X ..... part of his total income under the Act. The expenditure, the return of investment and cost of requisition are distinct concepts. Therefore the word incurred in Section 14A of the Act have to be read in the context of the scheme of the Act and if so read, it is clear that it disallows certain expenditures incurred to earn exempt income from being deducted from other incomes which is includable in the total income for the purposes of chargeability to the tax. It is equally well settled that expenditure is a pay out. In order to attract applicability of section 14A of the Act, there has to be a pay out and return of investment or a pay back is not such a debit item. [See: WALFORT SHARE AND STOCK BROKERS (P) LTD [ 2010 (7) TMI 15 - SUPREME ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowance under section 14A to the Assessing Officer for arriving at the expenditure disallowable, even though there was no expenditure incurred by the Appellant in earning the exempt income and Section 14A is inapplicable? (4) Whether on the facts and circumstances of the case and on the grounds raised, the Tribunal ought to have held that own funds and non-interest bearing funds having far exceeded the value of investments giving rise to exempt income, Rule 8D(2)(ii) had no application? 2. Learned Senior Counsel representing the assessee has furnished the order passed by the co-ordinate Bench of this court and submits that the issues involved in this appeal is covered by the judgment in the said case. 3. Learned counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... im of the assessee in respect of such expenditure in relation to income which does not form part of the total income under this Act. (3) The provisions of sub-Section (2) shall also apply in relation to a case where an assesee claims that no expenditure has been incurred by him in relation to income which does not form part of the total income under this Act. Provided that nothing contained in this Section shall empower the Assessing Officer either to reassess under Section 147 or pass an order enhancing the assessment or reducing a refund already made or otherwise increasing the liability of the assessee under Section 154, for any assessment year beginning on or before the 1st day of April 2001. 9. From perusal of Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se this court frames a substantial question of law that whether provisions of Section 115JA apply to the Banking Companies are not the remaining substantial questions of law would be reduced otiose. This court has already framed a substantial question of law in this regard today. This court by an order passed on 16.01.2020 passed in ITA No.18/2014 has already held that the provisions of Section 115JA do not apply to the banking companies. Therefore, the substantial questions of law Nos.3, 4 and 5 and substantial question of law framed in ITA 99/2010 are rendered academic and need not be answered. So far as substantial question of law No.2 in ITA No.97/2010 is concerned, the same is squarely covered by the decision of the Supreme Court in C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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