TMI Blog2019 (5) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... s during the year as the remaining amount of expenditure debited to Profit Loss Account has already been added back to the income by the assessee while computing the total income. Therefore against the expenses claimed by the assessee sustaining the disallowance towards the expenses claimed by the assessee which may have been incurred directly or indirectly for maintaining the investments fetching tax free income. We accordingly partly allow the revenue s appeal and sustain the disallowance u/s 14A - Appeal of the revenue is partly allowed. - ITA No.331/Ind/2017 - - - Dated:- 29-4-2019 - Kul Bharat, Judicial Member And Manish Borad, Accountant Member For the Assessee : S/Shri Ronak Doshi And Rajiv Garg, ARs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Non banking financial company. Income of ₹ 7259/- declared in the return of income submitted on 30.09.2008 for Assessment Year 2008-09. Assessment u/s 143(3) r.w.s. 263 of the Act was completed on 14.12.2010 at income of ₹ 2,80,495/-. Subsequently the order u/s 263 of the Act was passed by Ld. CIT, Ujjain on 28.3.2013 setting aside the assessment order dated 14.12.2010 and directing the Assessing Officer to examine the issue and reframe the assessment in the light of the observation made in the order u/s 263 of the Act. In pursuance to same Ld. A.O initiated the assessment proceedings u/s 143(3) r.w.s. 263 of the Act. The only issue for examination was disallowance u/s 14A of the Act. It was subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue s sole grievance is against the finding of Ld. CIT(A) deleting the disallowance u/s 14A of the Act at ₹ 2,23,40,745/- made by the Ld. A.O by applying rule 8D of I.T. rules r.w.r.t. Section 14A of the Act. We find that Ld. CIT(A) deleted the impugned disallowance of ₹ 2,23,40,745/- u/s 14A of the Act observing as follows; Ground No.1, 2, 3, 4 5:- Through these grounds of appeal the appellant has challenged the addition of ₹ 2,23,40,745/-on account of disallowance u/s 14A of the LT. Act. The AO made the addition of ₹ 2,23,40,745/- u/s 14A of the I.T. Act r.w.r. 8D. The appellant Company is a NBFC registered with RBI and engaged in the activities of granting of Inter corporate loans and in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [ITA NO. 5072/ Mu m/ 2005 dated 13.04.2011)(ASSESSMENT YEAR 2004-05) DCIT Vs Trade Apartment Ltd. ITAT, Kolkata [ITANO.1277/Kol/2011dated 0.03.2012 (ASSESSMENT YEAR 2008-09) ACIT Vs KESHA V SHARES STOCKS LTD, ITAT, Delhi [ITA NO. 4394/ Del/2011 dated 26.04.2013 (ASSESSMENT YEAR 2008-09) ITO Vs KARNAVATI PERTOCHEM PRIVATE LIMITED, ITAT, Ahmedabad [ITA NO. 2228/ Ahd/2012 dated 05.07.2013 (ASSESSMENT YEAR 2008-09) SAFAL REALITY PVT LTD. Vs ACIT, ITAT, Ahmedabad [ITA NO. 2334 1842/Ahdl/2012 dated 29.11.2013 (ASSESSMENT YEAR 2009-10 2010- 11) In the case of M/s. Turquoise Investment Pvt. Ltd. the AO while completing the assessment pertaining to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owing non-satisfaction is not as per the law and therefore, the action of the AO in applying Rule 8D is to be trated as justifiable and the disallowance u/s 14A is to be restricted to Rs. l0,17,78,678/- as made by the appellant while filing the return of income. Therefore, the addition made by the AO amounting to ₹ 2,23,40,745/- is deleted. Therefore, the appeal on these grounds is allowed . 8. From perusal of the above finding as well as considering the facts of the instant appeal we observe that the similar issue came up before us in one of the group concern of the assessee M/s. Turquoise Investment Finance Pvt. Ltd in ITANo.332 333/Ind/2017 order dated 06.02.2019. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red for administrating the investments fetching exempt income. We accordingly order so and direct the assessing officer to sustain the disallowance u/s 14A of the Act at ₹ 7,50,000/- under Rule 8D(2)(iii) of the IT, Rules. 15. In the result, against total disallowance of ₹ 65,73,689/- made by the Ld. AO u/s 14A of the Act, we sustained the disallowance at ₹ 7,50,000/- and partly allow the revenue s appeal . 10. As the issues and facts before us are squarely covered by our own decision referred above in the case of M/s. Turquoise Investment Finance Pvt. Ltd in ITA No.332 333/Ind/2017 order dated 06.02.2019, on examination of facts we find that in the instant appeal the net interest expen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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