TMI Blog2017 (1) TMI 678X X X X Extracts X X X X X X X X Extracts X X X X ..... inion, that the order of the FAA does not suffer from any legal infirmity - Decided against revenue Disallowance made u/s. 14A - Held that:- We find that the FAA had disallowed the expenditure that was claimed against the exempt income. The basic concept for disallowance u/s. 14A of the Act r. w. r. 8D of the Rules is to deprive the assessee of double benefit i. e. claiming deduction against tax free income. In the case under consideration the FAA has restricted the disallowance to the extent it was claimed against the exempt income. In our opinion there is no need to interfere with his order. So, confirming the same second ground is decided against the AO. - I. T. A. 185/Mum/2015 - - - Dated:- 6-1-2017 - Sh. Rajendra, Accountant Mem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same date, Essar Telecom Infrastructure P. Ltd. has also advanced money to LTL for acquisition UASL License. From the perusal of the records and information received u/s. 133(3) of the Act, the AO held that the source of the fund of ₹ 175 crores had come from Essar Investment Ltd. on 10. 01. 2008, that the money was refunded on the same to Essar Investment Ltd. , after the assessee had received the refund, that the real intention of the assessee was not share subscription in LTL but to advance the funds as loan to enable the latter to mobilize resources for acquisition of USAL Lincese from DOT. He held that the advance of ₹ 175 crores was a loan given by the assessee. Applying the principle of decision of Apex Court in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad not charged any interest, that the AO had taxed notional interest in the hands of the assessee without bringing any evidence of charging of interest by the assessee. He has also not explained as to how the interest income accrued to the assessee. In the normal course of its business transaction the assessee had advanced loan and had not charged any interest. Charging or not charging of interest is a discretion of an assessee-especially when the advance is made out of interest free funds. We are of the opinion, that the order of the FAA does not suffer from any legal infirmity. So, confirming the same we dismiss ground no. 1, raised by the AO. 6. Second ground of appeal is about disallowance made u/s. 14 A of the Act. During the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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