9911796707
TMI Blog2013 (8) TMI 622X X X X Extracts X X X X X X X X Extracts X X X X ..... rs 1999-2000 to 2002-03. The Ld. Counsel for the assessee submitted the copy of the order of the Tribunal. 3. The Ld. Departmental Representative fairly conceded that three grounds are covered by the decision of the Tribunal. 4. Ground No. 2 relates to the issue of disallowance u/s. 14A r.w.r. 8D of the Act. 5. During the course of the scrutiny assessment proceedings, the Assessing Officer noticed that the assessee has claimed income exempt from tax amounting to Rs. 4,03,89,927/- which included dividend, interest income on tax free bonds/securities. The AO observed that in the computation of income, an amount of Rs. 3,41,32,853/- has been considered for disallowance u/s. 14A of the Act. The AO was of the firm belief that as the method of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sonable opportunity of being heard to the assessee. Ground No. 2 is accordingly allowed for statistical purpose. 8. Ground No. 3 relates to disallowance of interest expenses of Rs. 20.20 crores. 9. The AO has discussed this issue at page-3 para-4 of his order and has disallowed proportionate interest on the borrowed funds in problem securities transactions following the decision of his predecessor. 10. The Ld. CIT(A) deleted the additions following the order of the ITAT for assessment years 1999-2000 to 2002-03. 11. We have carefully perused the orders of the lower authorities and the order of the Tribunal in assessee's own case (supra). The Tribunal has discussed this issue from para-3 onwards and at para-4 gave the following categoric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of its order. Respectfully following the decision of the Tribunal in assessee's own case (supra), findings of the Ld. CIT(A) are confirmed. Ground No. 4 is accordingly dismissed. 15. Ground No. 5 relates to the disallowance made u/s. 36(1)(vii) of the Act. 16. The AO has considered this issue at para-6 page-14 of his order. The Ld. CIT(A) has discussed this issue at page-5 para-7 onwards and deleted the entire disallowance made by the AO following the recent judgement of the Hon'ble Supreme Court in the case of Catholic Syrian Bank Ltd. Vs CIT. A similar issue arose in assessee's own case in assessment year 1999-2000 to 2002-03 which has been considered by the Tribunal at para-5 page-4 of its order wherein the Tribunal has followed the de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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