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TMI Blog2015 (8) TMI 1454X X X X Extracts X X X X X X X X Extracts X X X X ..... g Grounds of appeal:- "On the facts and in the circumstances of the case and in law, the Id. CIT(A) erred: 1. direction the AO to allow the assessee company to treat the interest cost of Rs. 1,17,10,935/- as Revenue Expenditure & also in ignoring the fact that the interest bearing borrowed funds were utilized for the purpose of investment in a Partnership Firm M/s. G.K. Developers. 2. allowing to claim the business loss of Rs. 14,14, 116/- derived at after allowing the claim of interest paid Rs. 1,17,10,935/- which was paid on borrowed funds utilized for Investment in a Partnership Firm M/s. G.K. Developers. 3. in not appreciating that the assessee company was liable for a disallowance as per section 14A of the Act which is mandator ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e respondent assessee is a company incorporated under the provisions of Companies Act, 1956 and is, inter-alia, engaged in the business of making investments in real estate ventures. The Assessing Officer noticed that assessee had borrowed unsecured loans of Rs. 11,99,37,000/-, which were invested in M/s. GK Developers; a partnership firm, as partner's capital contribution. As per the Assessing Officer, assessee was entitled to the share of profits from the partnership firm as a partner, which was exempt in terms of section 10(2A) of the Act. Therefore, the Assessing Officer concluded that an amount of Rs. 1,17,43,420/- being expenditure incurred in relation to the exempt income was liable to be disallowed in terms of section 14A of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 72 CTR 262 (Guj) In view of the above and in the absence of any contrary decision relied upon by Ld. Departmental Representative, we deem it fit and proper to uphold the conclusion drawn by the CIT(A), which is in conformity with the ratio of the decision of the Hon'ble Jurisdictional High Court(supra). Thus, on this aspect, Revenue fails. 5. Another aspect which is agitated is with regard to the direction of CIT(A) to verify and allow the assessee's claim for carry forward of the business loss pertaining to A.Y 2008-09. On this aspect, we find no merit in the grievance of the Revenue in as much as the CIT(A) has directed the Assessing Officer to verify the fact-situation and allow the claim as per law. Quite clearly, the Assessing Office ..... X X X X Extracts X X X X X X X X Extracts X X X X
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