2017 (7) TMI 1062 - HC - Income Tax

Tax Appeals are admitted for consideration of the following substantial question of law Whether in the facts and circumstances of the case the Income Tax Appellate Tribunal was right in confirming the addition made by the Assessing Officer under section 14A of the Income Tax Act ignoring the assessee s contention that interest paid on the borrowed funds cannot be treated as expenditure for earning tax free income earned by the assessee by investing the funds for short periods when such funds remained unrealised with the assessee in treasury operations of mutual funds?

Summary

The Gujarat High Court considered whether the Income Tax Appellate Tribunal was correct in confirming the addition made by the Assessing Officer under section 14A of the Income Tax Act. The court also noted that the assessee raised a question regarding the validity of reopening the assessment, which the counsel did not press.