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2014 (8) TMI 157 - AT - Income TaxLevy of interest u/s.234D - Retrospective amendment to the provision – Held that:- The Revenue could upon retrospective amendment, move a rectification u/s.154 – Relying upon Ester Industries Ltd. vs. Union of India [2013 (4) TMI 489 - DELHI HIGH COURT] - the Revenue cannot proceed de hors and in disregard with the established law, the decision by a higher appellate authority being binding on the subordinate authority - the law itself has intervened to provide a clear and unambiguous answer to the legal issue decided by the tribunal, which the assessee seeks to be given effect to, besides having been clarified by the high court – Decided against Assessee. Disallowance u/s 14A r.w. Rule 8D – Held that:- The entire disallowance is under rule 8D(2)(iii), i.e., at 0.5% of the average value of the investment, reckoned at one half of the book value of investments (yielding tax-exempt income), as at the beginning and the close of the year - there is not much difference between the opening and the closing value of the investment and the bulk of the tax exempt income arising by way of interest on tax-free bonds – Revenue ought to have required the assessee to substantiate its claim of the working of suo motu disallowance u/s.14A with reference to its accounts, and which would include the underlying vouchers as well –relying upon Godrej & Boyce Mfg. Co. Ltd. v. Dy. CIT [2010 (8) TMI 77 - BOMBAY HIGH COURT] – the matter is remitted back to the Ao for fresh adjudication – Decided in favour of Assessee.
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