TMI Blog2010 (12) TMI 976X X X X Extracts X X X X X X X X Extracts X X X X ..... make disallowance under section 14A are not fettered on that count, and except for this variation, the observations made by us while dealing with the assessment year 2001-02 will apply mutatis mutandis for these years as well. We may add that while deciding the issue regarding disallowance under section 14A, the Assessing Officer will, inter alia, bear in mind the principles laid down in the case of Godrej & Boyce Mfg. Co. Ltd. v. Dy. CIT [2010 (8) TMI 77 - BOMBAY HIGH COURT]. With these directions, the matters for the assessment years 2002-03 to 2004-05 are also remitted to the file of the Assessing Officer for fresh adjudication, and the appeals are, accordingly, allowed for statistical purposes. - IT APPEAL NOS. 6332 (MUM.) OF 2004, 215 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deduction of Rs. 1,44,57,738 on account of interest paid to buy shares held by the assessee as investment. This claim of deduction has been declined by the authorities below. 3. Learned counsel for the assessee invites our attention to the hon'ble jurisdictional High Court judgment in the case of CIT v. Srishti Securities (P.) Ltd. [2009] 183 Taxman 159/[2010] 321 ITR 498 (Bom.),wherein, it has been, inter alia held that in a situation in which, the assessee is holding shares as investment or as stock in trade (page 501) "for the purpose of controlling interest in other companies, interest paid on such borrowed funds will be deductible under section 36(1)(iii) of the Income-tax Act". 4. During the course of hearing and particularly in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en after making enquiries, at the assessment stage, it cannot be examined again at the stage of remanded proceedings before the Assessing Officer. He, therefore, prays that while remitting the matter to the file of the Assessing Officer, this aspect of the matter can be clarified. 5. The learned Departmental representative, on the other hand, submits that once there is no finding by the authorities below to the effect that the assessee was in the business for the purpose of controlling interest in other companies, it cannot be indeed open to us to decide the matter in the light of the judgment in the case of Srishti Securities (P.) Ltd. (supra) because the decision in the case of Srishti Securities (P.) Ltd. (supra) is rendered in a pecul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the purpose of controlling the interest. As a matter of fact, he goes on to argue that even this remand is not necessary because all the material facts are discernible from the material on record. 7. Having had regard to the rival contentions and material on record, we deem it fit and proper to remit the matter back to the file of the Assessing Officer, firstly, for recording a categorical finding as to whether or not the assessee is engaged in investment in shares for the purpose of holding and controlling interest, and thereafter, for deciding the claim for admissibility of deduction in accordance with law, inter alia, including the law laid down by the hon'ble jurisdictional High Court in the case of Srishti Securities (P.) Ltd. (supr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have decided the matter by one way or other so far as all other aspects barring deduction in the light of Srishti Securities (P.) Ltd.'s case (supra) and barring disallowance under section 14A are concerned. 9. In the result, the appeal is allowed for statistical purposes. I. T. A No. 2152/Mum/2006 : Assessment year : 2002-03 I. T. A No. 2153/Mum/2006 : Assessment year: 2003-04 I. T. A No. 3591/Mum/2008 : Assessment year : 2004-05 10. As the issue involved in all these appeals is the same as dealt with in the assessment year 2001-02, all these matters also stand restored to the file of the Assessing Officer firstly, for recording a categorical finding as to whether or not the assessee is engaged in investment in shares for the pur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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