9911796707
TMI Blog2013 (8) TMI 238X X X X Extracts X X X X X X X X Extracts X X X X ..... "Whether the Income Tax Appellate Tribunal was right in law and in facts in holding that the payment of a sum of Rs. 51.56 crores made by the assessee-bank to the Provident Fund Companies there expanded wholly and fully for the purpose of business or whether sum having been paid voluntarily without any legal liability, the same cannot be treated as the business expenditu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to cross appeals at the hands of the assessee as well as the revenue. Tribunal confirmed the view of the CIT(A) making following observations: "33. We have heard the rival contentions and perused the material on record, The undisputed facts are that during the year the assessee has earned interest of Rs. 17.45 crore on tax free bond and debentures as against which the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollowed the decision of CIT(A) for AY 2002-03. These facts have not been controverted by the Ld. D.R. nor have they brought on record any facts to the contrary. Hon'ble Bombay High Court in case of CIT v. Reliance Utilities & Power Ltd. (supra) has held that if there are interest free funds available to an assessee sufficient to meet its investments and at the same time the assessee has raised a l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... curred which must be disallowed u/s. 14A cannot be accepted. Disallowance u/s. 14A requires finding of incurring of expenditure. In the present case, the AO has presumed that the assessee might have incurred expenditure to earn the exempt income. He has not given any finding of incurring of expenditure. In view of these facts and respectfully following the decision of High Court, we are of the vie ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
