TMI Blog2020 (11) TMI 863X X X X Extracts X X X X X X X X Extracts X X X X ..... A SARATHI CHAUDHURY , JM Assessee by : Shri Sunil Ganoo Revenue by : Smt. Aparna M. Agarwal ORDER PER P.M. JAGTAP, VP : This appeal filed by the Revenue is directed against the order of ld. CIT(A)-7, Pune dated 27.02.2017 for the assessment year 2011-12 and the solitary issue involved therein relates to the deletion by the ld. CIT(A) of the addition of ₹ 16,85,75,866/- made by the Assessing Officer on account of disallowance u/s 14A of the Income Tax Act, 1961 read with Rule 8D of the Income Tax Rules, 1962. 2. The assessee in the present case is a cooperative bank which filed its return of income for the year under consideration on 30.09.2011 declaring a total income of ₹ 15,04,30,463/-. As noticed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was challenged by the assessee in the appeal filed before the ld. CIT(A) and after considering the submissions made on behalf of the assessee bank and perusing the relevant material available on record, the ld. CIT(A) deleted the said disallowance for the following reasons given in paragraphs 5.3 to 5.6 of his impugned order :- 5.3 I have carefully considered the facts of the case and law apparent from records. The appellant has e-filed its original return of income on 30.09.2011 declaring total income of ₹ 15,04,30,463/-. The AO was having information that appellant has purchased mutual fund to tune of ₹ 310,21,92,701/-. The AO verified the investment and found that the investments were disposed off during the year under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d other Bonds. Apparently, the appellant has offered this interest income under the head of Income from Business and Profession and has shown income from business and profession at ₹ 15,04,30,463/-. The appellant has shown net Profit of ₹ 10,42,64,947/- and after making disallowances u/s. 36 37 and 40 the appellant shown returned income at ₹ 15,04,30,463/-. Therefore, on factual matrix the appellant has offered its income under the head income from business and profession arid no exempt income or even capital gain has been shown by the appellant. It has not been brought on record that there is investments which are capable of yielding exempt income and appellant is holding such investments. Under these circumstances, on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case of G.V.K. Project Technical Services Limited, the disallowance made by the Assessing Officer u/s 14A on the basis of investments made by the assessee was deleted by the Tribunal holding that such disallowance could not be made in the absence of any exempt income reported by the assessee. The Hon ble Delhi High Court upheld the order of the Tribunal and the SLP filed by the Revenue against the order of the Hon ble Delhi High Court was dismissed by the Hon ble Supreme Court vide its order reported in 106 taxmann.com 181. As regards the CBDT Circular relied upon by the Assessing Officer for making a disallowance u/s 14A of the Act even in the absence of any exempt income reported by the assessee, ld. Counsel for the assessee has reli ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
