Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (8) TMI 1068 - AT - Income TaxDisallowance of interest u/s 36(1)(iii) - interest bearing funds had been diverted to sister concern, in the form of loans and advances for non-business purposes - HELD THAT:- As from the material on record that no fresh loans and advances were made during the previous year relevant to the assessment year under consideration. All the loans and advances made to the sister concern were made in the earlier years, the additions made in the earlier assessment years by the disallowance of interest, came to be deleted by this Tribunal in assessee’s own case for the assessment years A.Y. 2008-09 [2017 (6) TMI 1371 - ITAT PUNE], A.Y. 2009-10 [2017 (2) TMI 1293 - ITAT PUNE], A.Y. 2010-11 [2017 (12) TMI 1398 - ITAT PUNE], A.Y. 2011-12 [2019 (8) TMI 1835 - ITAT PUNE], A.Y. 2012-13 [2020 (11) TMI 602 - ITAT PUNE]. Therefore, even on the principle of consistency, no disallowance of interest u/s 36(1)(iii) is warranted. Accordingly, we do not find any illegality and perversity in the findings of the ld. CIT(A). Therefore, we do not find any merits in the ground of appeal no.2 and 3 filed by the Revenue. Disallowance u/s 14A - Admission of additional ground - HELD THAT:- The fact that the respondent-assessee company had not earned any exempt income is evident from the material on record, therefore, for adjudication this issue it does not require any verification of fact or enquiry into the facts. Thus, it is crystal clear that it pure question of law requiring no verification of facts. No illegality and perversity in admitting this additional ground of appeal by the ld. CIT(A) as it is in consonance with the settled position of law. Thus, the finding of the ld. CIT(A) that in the absence of any exempt income, resort to the provisions of section 14A cannot be made, cannot be faulted - The fact that the assessee company itself suo moto offered disallowance ipso facto cannot be reason for invoking the provisions of section 14A, as there cannot be estoppel against law. Therefore, we do not find any merits in the grounds of appeal no.4 and 5 raised by the Revenue. Accordingly, these ground of appeal no.4 and 5 raised by the Revenue stand dismissed.
|