2016 (10) TMI 1242

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..... E-TAX VERSUS RAGHUVIR SYNTHETICS LTD. [2013 (7) TMI 806 - GUJARAT HIGH COURT] and THE COMMISSIONER OF INCOME TAX VERSUS RELIANCE UTILITIES & POWER LTD. [2009 (1) TMI 4 - BOMBAY HIGH COURT] to be followed. - Decided against revenue
Jayant Patel And Aravind Kumar, JJ. For the Petitioner : Sri K. V. Aravind For the Respondent : Sri A. Shankar M. Lava JUDGMENT The appellant - Revenue has preferred the present appeal by raising the following substantial questions of law :- 1. Whether the Tribunal was correct in deleting the disallowance u/s 14A r.w.r. 8D(2)(ii) and 8D (iii) in respect of investments in assets yielding tax free income, holding that the provisions of Section 14A cannot be invoked unless and until there is a receipt of exe .....

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..... e interest free funds available with it and non-interest bearing advances/loans recorded perverse finding ?" 4. We permit the learned Advocate to amend the memo of appeal by raising the aforesaid question. 5. As the learned Advocate has restricted the present appeal only on the new question formulated and as question Nos.1 and 2 are not pressed, we find that only aspect to be considered is newly added question. The relevant discussion of the Tribunal on the aforesaid question is at paragraph Nos.22 and 23 which reads as under :- "22. We have perused the orders and heard the rival contentions. Balance sheet of the assessee placed at PB page-53, show its share capital reserved & surplus as under; As on 31.03.2008 As on 31.03.2009 Inc .....

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..... order of the CIT(A) in this regard. In the result ground 4 of the revenue is dismissed." 6. The aforesaid discussion shows that the Tribunal has found that the decision upon which reliance has been placed by the Revenue in the case of PUNJAB AND HARYANA HIGH COURT IN ABHISHEK INDUSTRIES LTD., is already reversed by the Apex Court in the case of MUNILAL SALES CORPN. VS. CIT 298 ITR 288 and further the Tribunal has also found that the stand of the assessee is supported by the decision of MUMBAI HIGH COURT in the case of RELIANCE UTILITIES AND POWER LTD., (313 ITRR 340) as well as Gujarat High Court in the case of RAGHUVIR SYNTHETICS LTD (354 ITR 222). 7. In our view, when both the issues are covered by the decisions of two High Courts, we .....

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