2016 (12) TMI 1828 - HC - Income Tax

Addition u/s 14A r/w Rule 8D - Tribunal held that no investment is made by the assessee in shares and securities (Mutual funds) out of interest bearing funds - HELD THAT - By an order 2014 (7) TMI 1328 - BOMBAY HIGH COURT this Court refused to entertain the Revenue's two appeals on an identical issue as not giving rise to any substantial question of law. The Revenue has not been able to point out any distinguishing features in the present appeal visa-vis the facts and law involved/existing in the Assessment Years 2006-07 and 2007-08, which would warrant a different view. No substantial question of law.

Summary

Issues:
Challenge to the order of the Income-tax Appellate Tribunal regarding Assessment Year 2008-09.

Analysis:
The appeal under section 260-A of the Income-tax Act, 1961 questions the Tribunal's decision on whether the assessee made investments in shares and securities using interest-bearing funds. The Tribunal's order, based on a previous case, dismissed the Revenue's appeal, citing consistency with decisions for prior assessment years. The Revenue's challenge, similar to previous appeals, was rejected by the Court in 2014 due to lack of substantial legal questions. No distinguishing features were identified in the current appeal compared to earlier years, leading to the dismissal of the proposed question as not raising substantial legal issues.

In summary, the High Court upheld the Tribunal's decision, finding no substantial legal question in the Revenue's appeal. The Court's refusal to entertain the appeal was based on the lack of differentiation from previous cases involving the same respondent assessee for Assessment Years 2006-07 and 2007-08. Consequently, the appeal was disposed of without costs.