9911796707
TMI Blog2011 (12) TMI 743X X X X Extracts X X X X X X X X Extracts X X X X ..... rected against the order dt. 13.03.2010 of the CIT(A)- 13 Mumbai relating to A.Y. 2007-08. 2. The Revenue in its grounds of appeal has challenged the order of the ld. CIT(A) in restricting the disallowance u/s 14A of the I.T. Act to ₹ 47,99,527/- as against 3,67,72,335/- made by the A.O. 3.1. Facts of the case in brief are that the A.O. during the course of assessment proceedings noted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Adlabs Films Ltd. and balance interest of Rs. 8,39,12,877/- is directly incurred in relation to loan given to Swan Consultants Ltd. on which taxable interest has been received. It was accordingly submitted that no disallowance u/s 14A read with rule 8D2(ii) can be resorted to. However, the A.O. was not satisfied with the explanation given by the assessee and calculated the disallowance u/s 14A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxable interest is received. It was accordingly argued that there cannot be any further disallowance u/s 14A read with rule 8D(2)(ii). 3.3 Based on the arguments advanced by the assessee and the various details furnished, the ld. CIT(A) noted that an amount of ₹ 300 crores taken from Reliance Capital Ltd. by the assessee on 29.1.2007 at 11% interest has been given to Swan Consultants P. Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the A.O. u/s 14 read with Rule 8D of the I.T. Rules. Aggrieved with such order of the ld. CIT(A), the Revenue is in appeal before us. 4. We have considered the rival arguments made by both the sides, pursued the orders of the Assessing Officer and the CIT(A) and the paper book filed on behalf of the assessee. After going through the various details filed by the assessee in the paper book as wel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 27/- has been paid can be disallowed u/s 14A read with Rule 8D since the loan has been utilized in shares of Adlabs Films Ltd., the income of which is exempt from tax. In this view of the matter and in absence of any contrary material brought to our notice by the ld. D.R against the factual finding given by the ld. CIT(A) that there is one to one nexus between interest paid and interest received, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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