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2014 (9) TMI 347 - AT - Income TaxExpenses incurred on public issue of equity shares disallowed u/s 35D – Held that:- As decided in assessee’s own case for the earlier assessment year, it has been decided that the Tribunal rightly observed from the assessment as well as the impugned order that there is no discussion on this aspect of the matter – thus, the matter is liable to be remitted back to the AO for fresh adjudication – Decided in favour of assessee. Confirmation of disallowance u/s 14A r.w. Rule 8D – Indirect expenses - Held that:- In CIT vs. Reliance Utilities and Power Ltd. [2009 (1) TMI 4 - HIGH COURT BOMBAY] - if there are funds available with the assessee, both interest free and overdraft/loans taken, then presumption would arise that investments would be out of the interest free fund generated or available with the assessee - CIT(A) from the balance sheet of the assessee observed that own funds of the assessee were sufficient for making investments yielding exempt income and under such circumstances no disallowance u/s 14A read with rule 8D (2) (ii) was called for - The disallowance under rule 8D(2)(iii) is in fact related to indirect expenditure incurred for earning of exempt income – thus, there was no infirmity in the order of the CIT(A) and the disallowance under 8D(2)(iii) is upheld – Decided against assessee. Computation of income u/s 115JB – Held that:- As decided in assessee’s own case for the earlier assessment year, it has been held that provisions of Section 115JB were not applicable to the assessee-bank - The provisions of Sec. 115JB do not apply to the assessee and, as such, the AO was in error in concluding that income had escaped assessment in the hands of the assessee – revenue could not bring any contrary fact or case law which may justify departure from the above finding of the Tribunal – Decided in favour of assessee.
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