Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (12) TMI 380 - ITAT BANGALORE

2015 (12) TMI 380 - ITAT BANGALORE - TMI - Addition made by the AO u/s 36(1)(iv) - assessee as Revenue expenditure for payment towards interest on PF - CIT(A) deleted the addition - Held that:- Identical issue has been considered and decided by the coordinate bench of the tribunal in the assessee's own case for the assessment year 1999-00 as well as for the assessment year 2006-07 and 2007-08 that it is not in dispute that the AO made the disallowance of the interest paid by the assessee on the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e of other assessees and for the other years in the case of the assesssee.- Decided in favour of assessee

Disallowance u/s 14A - Held that:- Since there is a frequent movement in the investment portfolio of the assessee therefore, the question which requires to be ascertained by indentifying the particular items of the expenditure debited by the assessee in the profit and loss account which can be apportioned u/s 14A. Accordingly, in the facts and circumstances of the case, we are of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

income and consequently can be disallowed u/s 14A of the Act. We make it clear that the disallowance made u/s 14A and quantum of disallowance worked out as per Rule 8D can't exceed the actual expenditure debited by the assessee in the profit and loss account which has a nexus for earning exempt income. - Decided in favour of assessee for statistical purposes - ITA No. 94/Bang/2014, ITA No.410/Bang/2014, CO No. 74/Bang/2014 - Dated:- 7-10-2015 - Vijaypal Rao, JM And Jason P. Boaz, AM For the App .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

law in deleting the addition made by the AO u/s 26(1)(iv) by placing reliance on the decision of the ITAT, Bangalore in the case of assessee for AY 2007-08 without appreciating the fact that the Department has not accepted that decision of the ITAT and further appeal has been filed before the High Court. ii. For these and other grounds that may be urged at the time of hearing, it is prayed that the order of the CIT(A) is so far as it relates to the above grounds may be reversed and that of the A .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

8377; 81,57,099/- paid on account of interest on PF. On appeal, the CIT(A) has allowed the claim of the assessee by following the decision of this Tribunal in the assessee's own case for the assessment year 1999-2000 and 2006-07 to 2007-08. 4. We have heard the learned DR as well as the learned AR and considered the relevant material on record. At the outset we note that identical issue has been considered and decided by the coordinate bench of the tribunal in the assessee's own case for .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

essment year 1998-99, in the assessee's case, and the ITA while deciding the appeal of the assessee in ITA No.611/Bang/2002 remanded the issue back to the file of the AO for fresh adjudication vide order dated 4.10.2003. The AO in accordance with the Tribunal's directions considered the matter and decided the issue in favour of the assessee vide order dated 21.12.2004, a copy of which was furnished by the learned counsel for the assessee during the course of hearing and is available on r .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he tribunal in AY 1999-2000 and 2006-07 in ITA Nos.1530 & 1531/Bang/2010 (Supra) has also held in favour of the assessee on the very same issue. Therefore, we do not see any valid ground to interfere with or deviate from the finding of the learned CIT(A) for the assessment year under consideration i.e 2007-08. 10. For the aforesaid view, we are fortified by the ratio laid down by the Hon'ble Punjab & Haryana High Court in CIT Vs. Leader Valves Ltd. [2007] 295 ITR 273, wherein it has .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

be maintained. We, therefore, hold that the disallowance made by the AO was not justified and that the learned CIT(A) rightly deleted the same. In view of the above, we do not see any merit in the appeal of the Department. 5. Following the earlier orders of this tribunal and to maintain the rule of consistency, we do not find any error or legality in the order of the CIT(A). Accordingly, Revenue's appeal is dismissed. 6. CO 74/Bang/2014 as well as the appeal in ITA No.470/Bang/2014 filed by .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

bjection as well as in the appeal filed by the assessee, the only issue raised is regarding disallowance made by the AO is of ₹ 41,86,447/- u/s 14A which has been upheld by the CIT(A). 8. From the assessment proceedings, the AO noted that the assessee company has claimed exempt income in respect of dividend received. Accordingly, the AO proposed to make disallowance u/s 14A. In response, the assessee submitted before the AO that the investment has been made out of assessee's own fund a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n of the AO before the CIT(A) but could not succeed. 9. Before us, the learned AR of the assessee submitted that the assessee's entire investment is in mutual funds, therefore, the assessee has not incurred any expenditure for earning the dividend income from the mutual funds. He has further submitted that AO has not pointed out or identified which of the expenditure has having nexus for earning the exempt income. In support of his contention, he has relied upon various decisions of this Tri .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ccount of interest expenditure. Therefore, the contention of the assessee that the investment is made from its own funds is not relevant. He has relied upon the orders of the authorities below: 11. We have considered the rival submissions as well as relevant material on record. We note from the details filed by the assessee that during the year under consideration there are several instances of fresh investment as well as sale of the investment in mutual funds. Therefore, there is a frequent mov .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version