TMI Blog2014 (9) TMI 1094X X X X Extracts X X X X X X X X Extracts X X X X ..... made u/s. 14A. Also see CIT vs. Delite Enterprises [2009 (2) TMI 498 - BOMBAY HIGH COURT ] - Decided in favour of assessee. - I.T.A. No. 652/Mum/2012 - - - Dated:- 8-9-2014 - Joginder Singh (Judicial Member) And Rajendra (Accountant Member) For the Assessee : J. P. Bairagra For the Department : Asghar Zain V.P. ORDER Joginder Singh (Judicial Member) The Assessee is aggrieved by the impugned order dated 21-11-2011 of the ld. First appellate authority broadly confirming the disallowance of sum of ₹ 10,12,366/-, being the administrative expenses of ₹ 1,13,291/- and finance charges (interest paid) of ₹ 8,99,344/- for the money borrowed on the amount utilized for purchase of shares u/s. 14A of the Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.1 The aggrieved Assessee preferred appeal before the ld. CIT(A) wherein following the Special Bench decision in the case of Cheminvest Ltd. Vs. ITO (supra), affirmed the view taken by the AO. We note that the Special Bench while coming to a particular conclusion held that when the expenditure of interest is incurred in relation to income which does not form part of total income, it has to suffer the disallowance irrespective of the fact whether an income is earned by the Assessee or not. In this decision it was also held that section 14A does not envisage any such exception whether any expenditure was incurred by the Assessee in relation to an income that does not form part of the total income of the Assessee under the Act and if the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision dated 31/07/2014, the Chennai Bench in the case of ACIT vs. Mr. M. Baskaran also followed the aforesaid decision from Hon ble Allahabad High Court in the case of M/s. Shivam Motors Pvt. Ltd. and also considered the Special Bench decision from Delhi Tribunal in Cheminvest Ltd. Vs. ITO (supra). The Bench also followed and discussed various other decisions including decision of Hon ble Gujarat High Court in the case of Corrtech Energy Pvt. Ltd.(Tax Appeal No.239 of 2014 dated 24/03/2014, wherein it was held as under :- We have given our thoughtful consideration of the facts and the decisions relied upon by ld.AR. The Hon ble Punjab Haryana High Court in the case of CIT vs. Winsome Textile Industries lts. Reported at (2009) 319 ITR ..... X X X X Extracts X X X X X X X X Extracts X X X X
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