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TMI Blog2009 (6) TMI 331X X X X Extracts X X X X X X X X Extracts X X X X ..... MATH JJ. Smt. S. R. Anuradha for the appellant. JUDGMENT The judgment of the court was delivered by 1. V. GOPALA GOWDA J.- This appeal is filed by the assessee against the order dated January 27, 2009, passed by the Income-tax Appellate Tribunal, Bangalore, in I. T. A. No. 917/Bang/2008. 2. The claim of the assessee for deduction of interest on the amounts borrowed by him for purchase of shares is disallowed by the Assessing Officer. In the appeal filed by him against the assessment order, the first appellate authority reversed the order of the assessing authority by applying the decision of the Supreme Court reported in CIT v. Rajendra Prasad Moody [1978] 115 ITR 519. The Revenue took up the matter in second appeal be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal was right in reversing the findings of the Commissioner of Income-tax (Appeals), which was based on a Supreme Court's decision by relying on the decision of other Tribunals? (iii) Whether or not the Tribunal was justified in not affording an opportunity of hearing to the assessee before deciding the issue on hand by placing reliance on judgments, which were not cited by either side? (iv) Whether or not the Tribunal was right in relying on the decisions inapplicable to the facts on hand by distinguishing the decision of the hon'ble Supreme Court, which is squarely applicable ?" 4. With reference to the contentions urged, we have perused the orders passed by the assessing authority, the first appellate authority and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s allowing any expenditure in respect of income which is not includible in the total income. Considering this change in the position of law the decision of the Supreme Court relied upon by the assessee does not apply to the assessee's case." 6. Therefore, the dividend income is exempted from the tax liability under section 10(33) of the Act. Under section 14A of the Act, expenditure relating to exempted income is not allowable. The assessing authority has considered the above relevant factor and disallowed the claim of the assessee. 7. The first appellate authority reversed the order of the assessing authority by applying the decision in Rajendra Prasad Moody's case [1978] 115 ITR 519 (SC), referred to supra, which was rendered ..... X X X X Extracts X X X X X X X X Extracts X X X X
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