TMI Blog2020 (10) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... st income. Decided in favour of assessee. Charging of interest u/s.234A, 234B 234C which was charged without giving credit for tax deducted at source - HELD THAT: - Interest levied under section 234 A. 234B 234C be recomputed after excluding the income which is subject to TDS. Therefore, as directed to recompute the interest accordingly. In the result, these grounds of appeal are allowed for statistical purpose. Disallowance of interest made u/s.14A - HELD THAT:- As decided in own case [ 2020 (3) TMI 1252 - ITAT MUMBAI ] we are of the view that to the extent the interest relate to the investment, i.e. being disallowable under Section 57 will become part of cost of acquisition of shares and therefore the AO is directed to take ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 9,86,14,668/- on the amounts outstanding to related three notified broker entities M/s. Harshad Mehta, M/s. J.H. Mehta and M/s. Ashwin Mehta. The ld. AO observed that out of the same, the assessee had suo moto disallowed an amount of ₹ 2,85,49,286/- u/s.14A of the Act and the balance interest payment of ₹ 7,00,65,382/- was claimed as deduction u/s.57 of the Act against the interest income on term deposits. We find that the assessment was completed by the ld. AO disallowing the assessee claim of deduction towards interest u/s.57 of the Act in the sum of ₹ 7,00,65,382/- on the ground that the said liability is only provisional and contingent. We find that the ld. CIT(A) had modified interest disallowance by reducing the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to the extent of interest income earned of ₹ 3,52,622/-. It is relevant to observe, in assessee's own case in AY 2017-18, the AO himself has allowed claim of deduction of interest expenditure to the extent of interest income earned during that year. In view of the aforesaid, the ground is allowed as indicated above. 3.2. Respectfully following the aforesaid decision, we direct the ld. AO to restrict the disallowance of interest to the extent of ₹ 4,13,695/- being the interest income received on term deposits. Accordingly, the ground No.1 raised by the assessee is allowed. 4. The Ground No.2 3 raised by the assessee is with regard to charging of interest u/s.234A, 234B 234C of the Act which was charged without ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as justified in capitalising the disallowance of interest made u/s.14A of the Act in the sum of ₹ 2,86,67,490/-in the facts and circumstances of the case. 5.1. We have heard rival submissions and perused the materials available on record. We find that this issue has already been adjudicated by this Tribunal in assessee s own case for A.Yrs. 2012-13, 2013-14 and 2015-16 in ITA No.6768, 6769 and 6771/Mum/2018 dated 16/03/2020 wherein it was observed as under:- 11. Now we take up ITA No. 6768, 6769 6771/Mum/2018 for AY 2012-13, 2013-14 2015-16 filed by the revenue on account of findings of Ld. CIT(A) in capitalizing the disallowance of interest of ₹ 2,86,67,490/- u/s 14A of the Act by relying on the decision of ITAT. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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