TMI Blog2021 (4) TMI 572X X X X Extracts X X X X X X X X Extracts X X X X ..... ts in the tax free securities in question and, therefore, the disallowance out of interest made by the Assessing Officer has been rightly deleted by the CIT(A). In this view of the matter, we hereby affirm the order of CIT(A) and Revenue fails on this aspect. Allowability of claim of deduction u/s 36(1)(viia) and Section 36(1)(viii) - HELD THAT:- As it is seen that the controversy regarding the quantum of eligible deduction allowable to a banking company under Section 36(1)(viia) and 36(1)(viii) of the Act has been decided by the Delhi Bench of the Tribunal in Tourism Finance Corporation of India Limited (supra), which has since been applied by the first Appellate Authority. No decision to the contrary has been brought to our notice, r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee itself, whereas the disallowance u/s 14A r.w. Rule 8D(2)(ii) made by the A.O. was under the observation that the investment in tax free securities/funds, were made out of common pool of funds comprising more than 90% interest bearing funds. Besides, the assessee failed to establish nexus between investment in exempt securities and interest free funds. 3. The Ld.CIT(A) has erred in law and in facts in on the issue calculation of allowability the deduction u/s 36(1)(viia) of the Act, as the methods of computation adopted by the A.O. in the above mentioned case for calculation of deduction u/s 36(1)(viia) is correct as the provisions of section also nowhere provided that base amount for the deduction u/s 36(1)(viia) has to be a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilar view was upheld in the appellate proceedings in assessee s own case for Assessment Years 2003-04, 2004-05 and 2005-06. 4. In this background, the learned Representative of the respondent-assessee pointed out before us that so far as the orders of the Tribunal for Assessment Years 2003-04, 2004-05 and 2005-06 are concerned, they continue to hold the field inasmuch as the Hon ble High Court of Uttarakhand, in ITA No.40 of 2009 and ITA No.51 of 2009 vide Orders dated 26th December, 2013, have approved the same. It is also pointed out that in Assessment Year 2011-12 and 2012-13, similar view has been taken by the Tribunal and, therefore, considering all the aforesaid precedents, the CIT(A) made no mistake in deleting the disallowance ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this aspect, the assessee canvassed before the CIT(A) that there was a mistake in the computation of the respective deductions both at the end of the assessee as well as that of the AO. The CIT(A), in paragraph 4.2 of his order, has noted the submissions of the assessee in this regard. The assessee further submitted that the manner of computation of the deduction under Section 36(1)(viia) and 36(1)(viii) of the Act be decided in the light of the Order of Delhi Bench of the Tribunal in Tourism Finance Corporation of India Limited Vs. JCIT ITA No.3155/Del/2002, dated 6th January, 2010. The CIT(A) considered the submissions put forth by the assessee and noted the following operative part of the Order of Delhi Bench of the Tribunal in the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15, and copies of such assessment orders have also been annexed in the Paper Book filed before us. It was, therefore, contended that the order of learned CIT(A) does not require any interference. 10. On the other hand, learned DR reiterated the stand of the AO but fairly did not controvert the factual matrix brought out by respondent-assessee. 11. After hearing both the sides, it is seen that the controversy regarding the quantum of eligible deduction allowable to a banking company under Section 36(1)(viia) and 36(1)(viii) of the Act has been decided by the Delhi Bench of the Tribunal in Tourism Finance Corporation of India Limited (supra), which has since been applied by the first Appellate Authority. No decision to the contrary has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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