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TMI Blog2020 (7) TMI 565X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of interest u/s 24(b) of the I.T Act, 1961 (the Act) by ignoring the fact that the interest was paid on loan which was meant for investment in shares/bonds and not for the purpose of purchasing property? 2. Whether disallowance u/s 14 A of the Act has to be limited to the quantum of income not forming part of total income of the assessee even when clear, explicit and unambiguous provisions of the section 14 A read with Rule 8D of the I. T Rules, 1962 (the Rule) do not stipulate such restriction? 3. Whether on facts and in circumstances of the case, the Ld. CIT(A) is legally justified in not upholding the disallowance u/s 14A of the Act r.w. R 8D of the Rule without considering legal principal that allowability/disallowability of ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he head of the house property. He further made disallowance of Rs. 1 5678235 under section 14 A of the income tax act. In the profit and loss account several expenditure were debited by the assessee who were also partly disallowed by the AO. 4. The assessee aggrieved with the order of the learned assessing officer preferred an appeal before the learned CIT - A, who passed an order on 29/9/2017 allowing the appeal of the assessee. Therefore, the learned assessing officer aggrieved with that order has preferred this appeal before us. 5. The first ground of appeal is with respect to deleting the addition of Rs. 1 5433735/- on account of deduction of interest expenditure under section 24 (b) of the income tax act by ignoring the fact that int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT - A the AO is aggrieved. 7. The learned and departmental representative vehemently supported the order of the learned assessing officer. 8. The learned authorised representative supported the order of the learned CIT - A and submitted that the issue is squarely covered in favour of the assessee by the order of his predecessor which has been followed. 9. We have carefully considered the rival contention and perused the orders of the lower authorities. In the present case the claim of the assessee is that it has paid interest of Rs. 1 5433735 against the rental income earned in profit and loss account during the year under consideration as the interest has been paid to HSBC bank for the purchase of Chemtax property in Mumbai. Assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... number two and three of the appeal relates to the disallowance under section 14 A of the income tax act. The learned assessing officer has disallowed the expenditure of Rs. 1 5678235 under section 14 A read with rule 8D. The AO found that assessee has invested substantial sum in various mutual fund. Therefore the entire interest expenditure of Rs. 1 5433735 and processing charges of loan of Rs. 1 37875 are in respect of moneys borrowed from banks for investment in mutual funds. Therefore he disallowed the interest of Rs. 15571610 and further 0.5% of the average value of the investment of Rs. 106624/- totaling to Rs. 1 5678235/-. 11. The learned CIT - A based on the order of his predecessor for assessment year 2011 - 12 directed the learne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned departmental representative as well as the learned authorised representative also considered that identical issue has been considered by the learned CIT - A for assessment year 2011 - 12 and deleted the above disallowance. Both parties submitted that there is no change in the facts and circumstances of the case. The learned authorised representative also submitted that none of the expenditure is found to be wanting for any evidences. On careful analysis of the order of the learned CIT - A, we found that he relied on the order of his predecessor for assessment year 2011 - 12 wherein all the facets of the allowability of those expenditure have been considered and disallowance has been deleted. We also do not find any infirmity in the orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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