TMI Blog2016 (8) TMI 1415X X X X Extracts X X X X X X X X Extracts X X X X ..... h rule 8D. Facts and circumstances during the assessment year 2007-08 are pari material, therefore, following the above reasoning, we direct the AO to delete the disallowance of interest while computing disallowance u/s.14A r.w.rule 8D.- Decided in favour of assessee. - ITA No. 5480 And 5481/Mum/2014 - - - Dated:- 24-8-2016 - SHRI R. C. SHARMA, AM AND SHRI SANDEEP GOSAIN, JM For The Assessee : Shri Yogesh A. Thar For The Revenue : Shri Abhishek Sharma ORDER PER R.C. SHARMA (A.M): These are the appeals filed by the assessee against the order of CIT(A), Mumbai, for the assessment year 2006-07 2007-08, in the matter of order passed u/s.143(3) r.w.s.254 of I.T.Act. 2. Common grievance of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITAT. Before the Tribunal, both the parties agreed that the issue requires reconsideration. The ITAT held that in light of the decision of Godrej and Boyce Mfg. Co. Ltd. v. DCIT (328 ITR 81) (Bom. HC), Rule 8D cannot be applied in the year under consideration and accordingly restored back the matter on the issue of 14A disallowance to the AO. While passing the order u/s.143(3) r.w.s.254, the AO once again made the disallowance of ₹ 81,28,000/- on the alleged ground that no disallowance u/s.14A was made by him and therefore the same cannot be reduced by the assessee. By the impugned order, the CIT(A) confirmed the action of AO on the plea that assessee has not filed a revised return of income to make such claim and, hence, in view of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act. The position of non-interest bearing funds and tax free securities for the year under consideration is as under: (Rs.in lacs) Details of owned Funds and other non-interest bearing funds As on 31/3/2006 Share Capital (a) 14,083 Reserves and Surplus (b) 77,693 Current Account Deposits - From banks (c) 4,658 -From others (d) 1,38,332 e=c+d 1,42,990 Total f=a+b+e 2,34,766 Tax Free Investments 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... restrict the disallowance u/s. 14A of the Act, to the exempt income earned by the assessee. In the process, the ITAT has considered all the relevant case law viz:- National Thermal Power Co. Ltd. V. CIT (229 ITR 383) (SC) CIT v. Pruthvi Brokers and Shareholders Pvt. Ltd. (349 ITR 336) Gujarat Gas Ltd. V. JCIT (245 ITR 84) (Guj. HC) Goetze (India) Ltd. V. CIT (157 Taxman 1) (SC) 9. In view of the above, we direct the AO not to make any disallowance of interest u/s.14A read with rule 8D. 10. Facts and circumstances during the assessment year 2007-08 are pari material, therefore, following the above reasoning, we direct the AO to delete the disallowance of interest while computing disallowance u/s.14A r.w.rule 8D. We direct a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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