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2020 (9) TMI 905 - AT - Income TaxDisallowance u/s 14A r. w. Rule 8D(2) (iii) - assessee failed to establish the nexus between that interest free funds with the investment resulting in exempt income - CIT-A deleted the addition - HELD THAT:- CIT(A) has allowed the claim of the assessee on the basis of the decision of Hon’ble ITAT in the assessee’s own case for the A.Y.2009-10 to 2011-12. The finding of the Hon’ble ITAT has been confirmed by Hon’ble Bombay High Court. Taking into account all the facts and circumstances and also considering this fact that the issue has duly been covered by the assessee’s own case decided by Hon’ble ITAT for the A.Y. 2009-10 to 2011-12, we are of the view that the CIT(A) has decided the matter of controversy judiciously and correctly which is not liable to be interfere with at this appellate stage. Accordingly, we decide these issue in favour of the assessee. Disallowance u/s 14A r.w. Rule 8D(2)(ii) in view of the Clause (f) to Explanation-1 to Section 115JB - HELD THAT:- The issue has been decided on the basis of CIT Vs. Bengal Finance & Investments Pvt. Ltd [2015 (2) TMI 1263 - BOMBAY HIGH COURT]and ACIT vs. Vireet Investment (P.) Ltd [2017 (6) TMI 1124 - ITAT DELHI]. Accordingly, it has been specifically held that the ground of disallowance computed u/s 14A cannot be imported to the computation of books of profit u/s 115JB of the Act. The facts are not distinguishable at this stage and no law contrary to the law relied upon the CIT(A) has been produced before us. Taking into account all the facts and circumstances, we are of the view that the CIT(A) has decided the matter of the matter of controversy judiciously and correctly which is not liable to be interfere with at this appellate stage. Accordingly, we decide this issue in favour of the assessee. Order being pronounced after ninety (90) days of hearing - COVID-19 pandemic and lockdown - HELD THAT:- Taking note of the extraordinary situation in the light of the COVID-19 pandemic and lockdown, the period of lockdown days need to be excluded. See case of DCIT vs. JSW Limited [2020 (5) TMI 359 - ITAT MUMBAI]
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