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TMI Blog2016 (6) TMI 1077X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment order dated 18-01-2013 passed by the learned Assessing Officer (hereinafter called the AO ) u/s 143(3) of the Income Tax Act,1961 (Hereinafter called the Act ). 2. The grounds of appeal raised by the assessee company in the memo of appeal filed with the Income Tax Appellate Tribunal, Mumbai (hereinafter called the Tribunal ) read as under:- 1. The learned Commissioner of Income Tax (Appeals) erred in confirming the addition of ₹ 80,10,897/- by way of disallowance u/s 14A of the Income Tax Act, 1961. 2. The learned Commissioner of Income Tax (Appeals) failed to appreciate that the disallowance is arbitrary illegal. 3. The learned Commissioner of Income Tax (Appeals) failed to appreciate that the provisions of Section 14A are not applicable in the instant case. 3. The brief facts of the case are that the assessee company is engaged in the business of construction, real estate and construction contractors. During the course of assessment proceedings u/s. 143(2) read with Section 143(3) of the Act, it was observed by the A.O. from the audited financial statements and details filed that the assessee company has made investments to the tune of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. Amount of expenses directly related to the income A Amount of interest expenses other than 1(A) 24,884,206 B1 Investments as on 01-04-09 501,250,000 B2 Investments as on 31-03-10 551,250,000 B Average value of investment [B=(B1+B2)/2] 526,250,000 C1 assets as on 01-04-09 2,148,716,096 C2 assets as on 31-03-10 2,719,749,454 C Average of total assets [C=(C1+C2)/2] 2,434,232,775 2 Attributable indirect interest expenses[A*B/C] 5,379,647 3 % of the average value of investment 2,631,250 Disallowance under section 14A(1+2+3) 8,010,897 4. Aggrieved by the assessment orders dated 18-01 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nately, the coordinate bench of the Chennai tribunal has not considered this decision and to that extent the order of the Chennai Bench is per in curium. The decisions relied upon by the Chennai bench are not directly on this issue and are distinguishable on facts. In the circumstances, relying upon the decision of the Special Bench in the case of M/s Cheminvest Ltd. no relief can be given to the appellant. This ground of appeal is, therefore, dismissed. 1.32. Following the above decision of my Ld. Predecessor, the ground of appeal is therefore dismissed. 2. In the result, the appeal is dismissed 6. Aggrieved by the appellate orders dated 31/07/2013 of the learned CIT(A), the assessee company is in appeal before the Tribunal. 7. The ld. Counsel for the assessee company submitted that the assessee company had invested ₹ 55,12,50,000/- in its subsidiary company M/s Marino Shelters Pvt. Ltd. which is also in the field of construction work. No exempt income has been earned by the assessee company during the previous year relevant to the assessment year from the said investments made by the assessee company . No dividend income has been earned by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... instant appeal are squarely covered by the decisions of the Tribunal in assessee s company own case in immediately preceding assessment year i.e. 2009-10 in ITA no 6191/Mum/2015 vide orders dated 20-01-2016. The relevant findings of the Tribunal in ITA No 6191/Mum/2015 vide orders dated 20-01-2016 in assessee company s own case for the assessment year 2009-10 i.e. immediately preceding assessment year are reproduced below:- 8. After considering the relevant finding given in the impugned orders and also material on record, we find that it is an admitted fact that , assessee has not earned any exempt income from the investment made in the equity shares of the subsidiary company. The disallowance u/s 14A has been made by the AO following the Special Bench decision in the case of Cheminvest Limited (supra). Now the said decision has been reversed by the Hon ble Delhi High Court, wherein it has been held that if no exempt income has been received or is receivable in the relevant previous year, then no disallowance could be made u/s 14A . the relevant observation and the finding by the Hon ble High Court after considering the decision of the Hon ble Supreme Court in the case of CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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