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TMI Blog2019 (3) TMI 1666X X X X Extracts X X X X X X X X Extracts X X X X ..... d in favour of assessee in assessee s own case for Assessment Year 2008-09 to 2011-12 no interest disallowance can be made u/s 14A of the Act when own funds of the assessee are sufficient to cover the value of investments for this purpose. Computing the book profit under section 115JB on disallowance under section 14A - HELD THAT:- This ground of appeal is covered by the decision of Tribunal in assessee s own case for Assessment Year 2008-09 to 2011-12 and by the decision of Special Bench of Delhi Tribunal in Vireet Investment [ 2017 (6) TMI 1124 - ITAT DELHI ]. Therefore, considering the decision of Special Bench which was followed in assessee s own case for Assessment Year 2008-09 to 2011- 12, we do not find any merit in the grounds of ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the I. T. Rules, 1962." ii) "On the facts, and in the circumstances of the case, the Ld. CIT-(A) erred in deleting the disallowance of interest expenses without appreciating that sub-rule 80(iii) starts with heading "Formula for determination of expenditure" and the three steps under this sub-rule to compute the expenditure in relation to exempt income and shall be applied collectively. Therefore, the total disallowance u/s. 14A has to be the aggregate of the amounts determined so by applying three steps together and not in isolation as done by the - Ld. CIT(A)". iii) "On the facts, and in the circumstances of the case, the Ld. CIT(A) erred in ignoring the CBDT Circular NO.5 of 2014 dated 11.02.2014 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal dated 27.12.2018 for Assessment Year 2008-09 to 2011-12. 3. After going through the grounds of appeal and in the decision of Tribunal, the ld. DR for the revenue agreed that ground no.1 is covered in favour of revenue and grounds no. 2 to 5 are covered in favour of assessee. 4. We have considered the rival submission of both the parties and perused the material available on record. We have also gone through the contents of decision of Tribunal for Assessment Year 2008-09 to 2011-12 dated 27.12.2018. Ground No.1 relates to directing the Assessing Officer to exclude the investment made by assessee in Garware Chemicals Ltd. while computing the disallowance under section 14A r.w.Rule 8D. We have noted that this ground of appeal is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... judicial pronouncement: 1. ACIT Vs. Vireet investment [165 ITD 25 (Del) (SB)] 2. ACB India Vs. ACIT [374 ITR 108 (Del)] 3. CIT vs. Interglobe Enterprises Ltd. (Delhi High Court) 4. M/s. Slyvex cable Co. Pvt. Ltd Vs. DCIT being ITA No. 8581/Mum/2011 for A. Y 2008-09 dated 24.02.2016. 5. Syntex Corp Pvt Ltd Vs. ITO being ITA No. 2994/Mum/2012 dated 21.06.2018. 21. In the A.Y 2009-10, we find that assessee was having own funds of ₹ 23,758.60 lakhs against which investment was only to the tune of ₹ 3,810.02 lakhs. Accordingly no disallowance of interest is warranted in terms of judicial pronouncements referred above. 22. Facts and circumstances in the A.Y 2010-11 and 2011-12, wherein the Revenue is aggrieved for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned by the assessee": 18. In view of the above we direct the A.O to restrict the disallowance u/s 14A in all the years to the amount of exempt income earned by the appellant during the year under consideration. We also find support for this contention in the judgement of the Hon'ble ITAT, Mumbai in the case of Daga Global Chemicals Vs. ACIT in ITA No. 5592/Mum/2012 wherein the assessee had appealed against the excessive disallowance made u/s 14A of the Act. The ITAT subsequently held that even if disallowance u/s 14A of the Act is made, the same shall not exceed the amount of exempt income earned. Relevant extract of the said judgement is reproduced hereunder; "At best; if any disallowance could be made that can be r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat this ground of appeal is covered by the decision of Tribunal in assessee's own case for Assessment Year 2008-09 to 2011-12 and by the decision of Special Bench of Delhi Tribunal in Vireet Investment (165 ITR 25 (Delhi SB). Therefore, considering the decision of Special Bench which was followed in assessee's own case for Assessment Year 2008-09 to 2011- 12, we do not find any merit in the grounds of appeal raised by revenue. 11. Ground No.5 relates to disallowance of set off of unabsorbed depreciation pertaining to Assessment Year 2001-02 against the income of current year. We have noted that this ground of appeal is also covered in favour of assessee and against the revenue by the decision of Assessment Year 2010-11, wherein the Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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