Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (4) TMI 1511 - ITAT MUMBAIDisallowance u/s 14A r.w. Rule 8D(ii) - Investments were made out of own funds - disallowance u/s 14A added back while computing Book Profits u/s. 115JB - HELD THAT:- We find that undisputed position that emerges is the fact that the assessee’s own funds were more than the investments made by the assessee and therefore, a presumption was to be drawn in assessee’s favor that the investments were made out of own funds as held in CIT vs. HDFC Bank Ltd. [2014 (8) TMI 119 - BOMBAY HIGH COURT] . This position has been reiterated by Hon’ble Apex court in the recent decision of CIT Vs. Reliance Industries Ltd. [2019 (1) TMI 757 - SUPREME COURT]. Secondly, this issue has already been adjudicated by the Tribunal in assessee’s own case for AY 2013-14. Therefore, no infirmity could be found in the impugned order so far as the disallowance of interest expenditure u/r 8D(2)(ii) is concerned. Disallowance of Section 14A while computing Book Profits u/s. 115JB has been deleted by Ld. first appellate authority by placing reliance on the decision of Delhi Tribunal (Special Bench) rendered in ACIT Vs. Vireet Investment (P.) Ltd. [2017 (6) TMI 1124 - ITAT DELHI] . No contrary decision has also been placed on record by the revenue. There is nothing on record which suggest that the assessee has debited any actual expenditure in the Profit & Loss Account and secondly, this issue has also been adjudicated by Tribunal in assessee’s favor for AY 2013-14. The impugned order would require no interference in this regard. - Decided against revenue.
|