Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2013 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (3) TMI 437 - HC - Income TaxJurisdiction u/s 263 by CIT(A) - as per CIT(A) AO has failed to take recourse to the provisions of Section 14A to disallow the expenditure in relation to the income which does not fall a part of the total income - Tribunal reversed the order of the C.I.T. as his observation are not based upon appreciation of the facts as the assessee has itself disallowed a sum of Rs.1.33 crores in its computation of income - Held that:- The assessee did not maintain any separate accounts for the purpose of the exempt income. The assessee did not give one to one co-relation between the funds available and the funds deployed.It was, therefore, not possible to follow with any amount of certainty as to the part or portion of the sum of Rs.4,49,02,775/- paid on account of interest relatable to the exempt income. The assessee has admittedly earned interest amounting to a sum of Rs.2,68,75,491/-. which could not have been set off against the sum of Rs.4,49,02,775/- because the sum of Rs.2,68,75,491/- earned on account of interest is clearly taxable. The interest paid by the assessee amounting to Rs.4,49,02,775/- is both on account of taxable income and the exempt income. It was for the assessee to furnish the actual amount of interest paid for the purpose of earning the dividend income which the asessee did not do. The assessee, as such, did not discharge its burden and, therefore, the assessee could not have claimed that only a sum of Rs.1,33,51,132/- was relatable to interest paid for the purpose of earning the exempt income. There was, as such, reason enough to hold that the assessment was erroneous and was also prejudicial to the interest of the Revenue. Thus the Tribunal did not realize the facts and circumstances correctly. The interference by the C.I.T. was based on facts and not any change of opinion, thus the order of the CIT is restored.
|