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TMI Blog2018 (6) TMI 1461X X X X Extracts X X X X X X X X Extracts X X X X ..... for the purpose disallowing any expenditure incurred in relation to the said income, therefore, section 14A would not apply if no exempt income was received during the relevant previous year. That being so, we decline to interfere in the order passed by the CIT(A), his order on this issue is hereby upheld and the ground of appeal raised by the Revenue is dismissed. - ITA No. 389/MUM/2017 And C.O.No. 168/MUM/2018 - - - Dated:- 27-6-2018 - SHRI SAKTIJIT DEY, HON BLE JUDICIAL MEMBER AND SHRI Dr. A.L. SAINI, HON BLE ACCOUNTANT MEMBER For The Assessee : Shri K. Shivaram, Sr.Adv. Shri Rahul K. Hakani, Adv. For The Department : Shri Virendra Singh DR ORDER PER Dr. A.L. SAINI, ACCOUNTANT MEMBER The captioned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r. 8D(2) is bad in law as assessee had sufficient non-interest bearing funds and investment during the year was not out of borrowed funds. 3. The ld. CIT(A) failed to appreciated that ld. Assessing Officer erred in applying Rule 8D(2)(iii) to the facts of the present case. 4. The respondent craves lead to add, amend, alter or vary the grounds of appeal at the time of or before the date of hearing. 4. Since the appeal filed by the Revenue and the Cross Objections filed by the assessee relate to the same assessment year, same assessee and identical issues are involved, therefore they have been clubbed and heard together and a consolidated order is being passed for the sake of convenience and brevity. 5. The facts of the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sr. No. Particulars Amount. 1 The amount of expenditure directly relating to income which does not form part of total income Rule 8D(2)(i) NIL 2 Expenditure by way of interest during the previous year which is not directly attributable to any particular income or receipt an amount computed in accordance with the following formula namely: A x B/C ₹ 31,60,31,155 x (Rs. 33,75,39,850/Rs.633,06,24,268) ₹ 1,68,50,330 A = The amount of expenditure by way of interest other than ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t year under consideration, therefore section 14A r.w.r 8D do not apply to the assessee, hence, he deleted the addition made by the Assessing Officer. 7. Aggrieved by the order of the ld. CIT(A), the Revenue is in appeal and the assessee is in Cross Objection before us on the same issue. Ld. Departmental Representative for the Revenue has primarily reiterated the stand so taken by the Assessing Officer, which we have noted in our earlier para and is not being repeated for the sake of convenience and brevity. On the other hand, ld. counsel for the assessee has defended the order passed by the ld. CIT(A). 8. We have given a careful consideration to the rival submissions and perused the material available on record. We note that the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar for the purpose disallowing any expenditure incurred in relation to the said income, therefore, section 14A would not apply if no exempt income was received during the relevant previous year. That being so, we decline to interfere in the order passed by the ld. CIT(A), his order on this issue is hereby upheld and the ground of appeal raised by the Revenue is dismissed. 9. The assessee has raised the cross objection vide Cross Objection No.168/MUM/2018. We note that the Cross Objections are only supporting to the order of the ld. CIT(A). As we dismissed the appeal of the Revenue on the same issue, therefore, the Cross Objections filed by the assessee has become infructuous and is accordingly dismissed in limini. 10. In the result, a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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