Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (8) TMI 1027 - AT - Income TaxDisallowance under section 14A of the Act r/w Rule 8D - CIT(A) deleted the disallowance - Held that:- CIT(A) has mentioned in his order that during the year under consideration, the assessee has not invested its borrowed funds in respect of the shares which are held as investment. The learned CIT(A) has relied upon the judgment of the Hon'ble Jurisdictional High Court in CIT v/s Reliance Utilities and Power Ltd(2009 (1) TMI 4 - HIGH COURT BOMBAY ) wherein it was held that if there were funds available, both interest free and over draft and/or loans taken, then a presumption would arise that investment would be out of interest free funds generated, or available with the bank. Relying on this judgment of the Hon'ble Jurisdictional High Court, the learned CIT(A) has given a factual finding that the assessee had sufficient funds of its own to meet the investment and no borrowed funds were diverted for the purpose of making investment. This factual finding has not been rebutted before us by the learned Departmental Representative. Therefore, we are of the view that no interference is called for in the order of the learned CIT(A) in deleting the disallowance of interest made by the Assessing Officer in the assessment order. - Decided in favour of assessee Disallowance of proportionate expenses - Held that:- It has been argued by the learned Counsel that the disallowance needs to be worked out again, for the reason that no disallowance under section 14A can be made on the strategic investments made in the subsidiaries. The second contention of the learned Counsel is that no disallowance under section 14A, can be made with respect to the shares held as stock–in–trade. It is seen that though these contentions were not raised by the assessee before the authorities below, undisputedly, in many cases, these contentions have been accepted by the various Benches of the Tribunal. Therefore, respectfully following the cases laws cited above, we set aside the order passed by the learned CIT(A) and restore the issue to the file of the A.O. for verification of the facts as narrated by the learned Counsel and to then accordingly adjudicate this issue afresh. Needless to say that the assessee should also be given adequate opportunity of hearing to put forth all the details and evidences as may be considered appropriate by the assessee in support of its contentions - Decided in favour of assessee for statistical purposes. Addition to the book profits under section 115JB with respect to the disallowance made by the Assessing Officer under section 14A - Held that:- It is seen that this ground has not been adjudicated by the learned CIT(A) in the appeal order. Therefore, in all fairness and to meet the ends of justice, we set aside the impugned order passed by the learned Commissioner (Appeals) and remit this issue to the file of the learned CIT(A) for adjudication of this issue afresh after giving adequate opportunity of hearing to the assessee. - Decided in favour of assessee for statistical purposes.
|