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TMI Blog2020 (11) TMI 709X X X X Extracts X X X X X X X X Extracts X X X X ..... h, one of us (TSSJ) was a party, wherein it was held that in terms of Section 14A of the Act, only expenditure, which was proved to be incurred in relation to earning of tax free income, could be disallowed and such provision could not be extended to disallow expenditure, which was assumed to have been incurred for earning tax free income. It was further held that to apply provisions of Section 14A of the Act, Assessing Officer should have recorded a finding as to how Sub-Section (1) of Section 14A of the Act would stand attracted and in absence of any such finding, the disallowance made was not justifiable. In the present case there is no opinion recorded by the Assessing Officer as to how Sub- Section (1) of Section 14A of the Act would s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant/Revenue and Mr.A.S.Sriraman, learned counsel appearing for the respondent/assessee. 4. The assessee is a resident domestic company, in which, public were not substantially interested. They filed return of income for the assessment year under consideration namely 2014-15 on 28.11.2014. Subsequently, they filed a revised return of income disclosing ₹ 2,71,75,580/-. The return was processed under Section 143(1) of the Act and thereafter, the case was selected for scrutiny. A notice under Section 143(2) of the Act was also issued on 31.8.2015. During the course of scrutiny, it was found that the assessee company made investments in various companies amounting to ₹ 1,23,59,30,000/- as on 31.3.2014. The assessee was called upon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stand attracted and in absence of any such finding, the disallowance made was not justifiable. 7. The relevant portions in the said decision read as follows : 24. We had an occasion to consider a similar question in the case of CIT, Corporate Circle-3, Chennai v. Visual Graphics Computing Services India Pvt. Ltd. [TCA.No.414 of 2018 dated 19-8-2020]. In the said appeal, question of law No.5, which was framed for consideration, was as to whether the Tribunal was right in holding that the provisions of Section 14A of the Act read with Rule 8D of the said Rules will have no applicability if there is no exempt income earned or received during the previous year though the disallowance is linked to expenditure incurred on investment fetching exe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 A of the Act. 15.1 Therefore, as adverted to above, Rule 8D, cannot come to the rescue of the Revenue. 15.2 In any event, the Tribunal, via, the impugned judgment has remitted the matter to the Assessing Officer. 15.3 Therefore, for the foregoing reasons, we are of the view, that no interference is called for qua the impugned judgment. As against the decision of this Court in the case of Chettinad Logistics Pvt. Ltd., the Revenue preferred appeals before the Hon'ble Supreme Court and the special leave petitions were dismissed on the ground of delay as well as merits in the decision reported in (2018) 95 Taxmann.com 250.' 8. In the instant case also, the facts are identically cogent and there is no opinion recorded by the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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