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2020 (11) TMI 947 - HC - Income TaxDisallowance u/s.14A - Tribunal setting aside and remitting the issue to the file of the AO to reconsider in accordance with the guidelines laid down by the Bombay High Court in the case of M/s. Godrej Boyce Manufacturing Co. Ltd. 2010 (8) TMI 77 - BOMBAY HIGH COURT - HELD THAT - Singular contention that the Tribunal while passing the impugned order has directed the Assessing Officer to decide the issue in view of the law laid down by the Bombay High Court in the case of M/S. GODREJ BOYCE MANUFACTURING CO. LTD. , 2010 (8) TMI 77 - BOMBAY HIGH COURT and there are several other judgments on the issue, which have been remitted for consideration before the Assessing Officer and the order of the Tribunal be modified and the Assessing Officer be directed to decide the issue remitted to him as per the extant position of law. The aforesaid submission has not been fairly opposed by learned counsel for the assessee. It is not necessary for us to deal with the substantial questions of law framed by this Court. As agreed to by learned counsel for the parties, the order dated 18.07.2012 passed by the Tribunal is modified and the Assessing Officer is directed to decide the issue remitted to it in accordance with the extant legal position
Issues involved:
1. Interpretation of Tribunal's decision based on Bombay High Court guidelines 2. Disallowance of interest paid under section 14A of the Income Tax Act Analysis: 1. The appeal under Section 260-A of the Income Tax Act, 1961 was filed by the revenue concerning the Assessment Year 2007-08. The Tribunal had remitted the matter to the Assessing Officer for reconsideration in accordance with the guidelines set by the Bombay High Court in a specific case. The substantial questions of law raised in the appeal pertained to the correctness of the Tribunal's decision without examining the peculiar transactions and the potential device involved. The Court modified the Tribunal's order and directed the Assessing Officer to decide the issue based on the extant legal position, as agreed upon by both parties. 2. The facts of the case involved a non-banking financial institution declaring a loss in the said assessment year. The Assessing Officer determined the income of the assessee, leading to appeals before the Commissioner of Income Tax - Appeals and subsequently before the Tribunal. The Tribunal, in its order, directed the Assessing Officer to pass a speaking order after bringing necessary materials on record for making disallowances as per law. The Tribunal's decision was based on affording an opportunity to the assessee to present its case and cooperate with the assessing officer. The revenue, being aggrieved by the Tribunal's order, appealed before the High Court, which modified the order and directed the Assessing Officer to decide the issue in accordance with the prevailing legal position. In conclusion, the High Court judgment focused on interpreting the Tribunal's decision in light of the Bombay High Court guidelines and ensuring that the Assessing Officer reconsiders the issue based on the extant legal position. The Court's decision aimed at upholding the principles of law and ensuring a fair and just determination of the matter at hand.
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