TMI Blog2014 (3) TMI 856X X X X Extracts X X X X X X X X Extracts X X X X ..... finding of fact that the assessee did not make any claim for exemption of any income from payment of tax - It was on this basis that the tribunal held that disallowance under section 14A of the Act could not be made – no question of law arises for consideration – Decided against Revenue. - Tax Appeal No. 239 of 2014 - - - Dated:- 24-3-2014 - Akil Kureshi And Sonia Gokani,JJ. For the Petitioner : Mrs. Mauna M. Bhatt, Advocate ORDER (Per : Honourable Mr. Justice Akil Kureshi) 1. Revenue has challenged the judgement of the Income Tax Appellate Tribunal dated 21.10.2013 raising following questions for our consideration : (A) Whether the Appellate Tribunal has substantially erred in deleting the addition of RS.12.33 l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re used only for business purpose and owned capital was only used for investment. Admittedly no separate accounts are maintained for business and investment activities therefore appellant's claim is not justified that borrowed funds were not used in making investment. In view of this, I do not agree with my predecessor that since appellant had sufficient interest free funds, no part of borrowed funds can be attributed to investments. Further, appellant s argument that it did not earn any exempt income during the year and therefore no disallowance of section 14A can be made is without any basis. Since appellant made investment in shares which will result only in dividends which are exempt from tax, not receiving any exempt income during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he present case, we are concerned with the assessment year 20092010, such formula was correctly applied by the Revenue. We however, notice that subsection( 1) of section 14A provides that for the purpose of computing total income under chapter IV of the Act, no deduction shall be allowed in respect of expenditure incurred by the assessee in relation to income which does not form part of the total income under the Act. In the present case, the tribunal has recorded the finding of fact that the assessee did not make any claim for exemption of any income from payment of tax. It was on this basis that the tribunal held that disallowance under section 14A of the Act could not be made. In the process tribunal relied on the decision of Division Be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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