2015 (11) TMI 392 - GUJARAT HIGH COURT

Disallowance of the interest expenses under section 14A read with rule 8D - assessee suo motu disallowed the amount - ITAT delted the disallowance - Held that:- So far as the contention on behalf of the appellant with respect to the applicability of rule 8D of the Rules with effect from March 31, 2006, is concerned, there cannot be any dispute about the same. How ever, it is required to be noted that the Assessing Officer made the dis allowance under section 14A of the Act solely on the ground that the assessee failed to justify that the investment was made out of the interest- free funds. However, both the learned Commissioner of Income-tax (Appeals) as well as the learned Tribunal have found otherwise. Under the circumstances, the decision of the Bombay High Court in the case of Godrej and Boyce Mfg. Co. Ltd. (2010 (8) TMI 77 - BOMBAY HIGH COURT ) which has been relied upon by the learned counsel appearing on behalf of the Revenue would not be of any assistance to the facts of the case on hand. Therefore, we confirm the impugned judgment and order passed by the learned Tribunal in so far as deleting the disallowance of interest expenses under section 14A of the Act in its entirety.- Decided against revenue.

Disallowance under section 40(a)(ia) - non-deduction of the TDS on over seas freight - ITAT deleted the disallowance - Held that:- As per section 172 of the Act, payment made to the non-resident shipping company would not be covered in section 194C or section 194 of the Act. At this stage, it is required to be noted that it is not in dispute that the amount in question was in fact paid to the non-resident shipping company. Under the circumstances, the learned Tribunal has rightly deleted the disallowance made by the Assessing Officer under section 40(a)(ia) of the Act. - Decided against revenue.