TMI Blog2013 (3) TMI 437X X X X Extracts X X X X X X X X Extracts X X X X ..... loyed.It was, therefore, not possible to follow with any amount of certainty as to the part or portion of the sum of Rs.4,49,02,775/- paid on account of interest relatable to the exempt income. The assessee has admittedly earned interest amounting to a sum of Rs.2,68,75,491/-. which could not have been set off against the sum of Rs.4,49,02,775/- because the sum of Rs.2,68,75,491/- earned on account of interest is clearly taxable. The interest paid by the assessee amounting to Rs.4,49,02,775/- is both on account of taxable income and the exempt income. It was for the assessee to furnish the actual amount of interest paid for the purpose of earning the dividend income which the asessee did not do. The assessee, as such, did not discharge i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, a total loss was computed at a sum of Rs.85,93,770/- which was accepted by the Assessment Officer. The C.I.T. in exercise of power under Section 263 directed the Assessment Officer to pass a fresh order in accordance with law and to make appropriate disallowance under Section 14 A of the Income Tax Act. The reasons assigned by the C.I.T. are as follows:- Under the provisions of Section 14A, the Assessing Officer has to disallow the expenditure in relation to the income which does not fall a part of the total income. On the other hand, it is clear from the assessment order that the Assessing Officer has failed to take recourse to the provisions of Section 14A. On this basis alone the assessment order is erroneous inasmuch as it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case. Therefore, the assessment order passed by him is clearly erroneous and prejudicial to the interest of the Revenue . 3. The learned Tribunal reversed the order of the C.I.T. in an appeal preferred by the assessee on the basis of the following reasons:- In this case, the CIT has observed that the AO has not dealt with the issue of disallowance of interest under Section 14A of the I.T. Act. However, the above observation of CIT is not based upon appreciation of the facts involved in this case as the assessee has itself disallowed a sum of Rs.1.33 crores in its computation of income filed before the department and the AO has completed the assessment, after taking into consideration the above facts and submissions of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed by the Tribunal. Nonetheless, the method indicated in Rule 8D, introduced on 24th March, 2008, has been followed in this case. It is not, therefore, possible to say that the Revenue suffered any prejudice. The order of remand passed by the C.I.T. is merely on the basis of a change of opinion and, therefore, this Court should refrain from interfering with the order under challenge. 6. Md. Nizamuddin, learned advocate appearing on behalf of the appellant/revenue disputed this submission. 7. We are of the opinion that the Assessment Officer in its order dated 28th January, 2005 did not make provision for disallowance of expenditure in terms of Section 14A of the I.T. Act. The assessee has paid interest of Rs.4,49,02,775/- out of wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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