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2016 (6) TMI 1460 - AT - Income TaxDisallowance u/s 14A read with Rule 8D and 36 - assessee argued AO did not consider that the interest paid was in respect of specific loans taken as such as car loans and export packing credit loans, which were not considered for calculating proportionate interest - HELD THAT:- As decided in assessee own case [2013 (9) TMI 1297 - ITAT MUMBAI] we find merit in the prayer of the Ld Counsel to remit the matter to the files of the AO for examination of the issue afresh. Therefore, we remand the matter to the files of the AO to re-adjudicate the issue in accordance with the jurisdictional High Court judgment in the case of Godrej & Boyce [2010 (8) TMI 77 - BOMBAY HIGH COUR] after granting a reasonable opportunity of being heard to the assessee. It is the settled law that the AO is under obligation to reject the claim of the assessee by giving speaking order on this issue before he resort to thrust on the assessee the provisions of rule 8D r w section 14A of the Act. Accordingly, issue no.1 is remanded and relevant conclusions of the revenue authorities are set aside. Disallowance u/s 36(1)(iii) of the Act in respect of the interest claim of the assessee - It is a fact that neither the AO nor the CIT (A) have really gone into the issue of existence of excess funds and have given categorical findings about this fact. Therefore, in our considered opinion, this issue should also be set aside to the files of the AO for fresh adjudication considering the judgment of the Supreme Court in the case of Reliance Petro-products [2010 (3) TMI 80 - SUPREME COURT] as well as the relevant law in force. In the light of the foregoing discussion, we direct the ld. Assessing Officer to examine the case of the assessee and decide afresh in the light of the directions contained in the aforesaid order of the Tribunal - Appeals of the assessee are allowed for statistical purposes.
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