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TMI Blog2021 (2) TMI 486X X X X Extracts X X X X X X X X Extracts X X X X ..... h 'C' dated 16.10.2019 in ITA No.2173/AHD/2015 for the A.Y. 2011-2012. 2. The Revenue has proposed the following two substantial questions of law for consideration of this Court: "[A] Whether the Appellate Authority has erred in law and on facts in not treating the Professional Fees of Rs. 25,04,970/as income during the year and also in ignoring Section 199 of the Act read with Rule 37BA, by allowing TDS credit to be given in the year prior to the year in which such income is held to be liable to tax ? [B] Whether the Appellate Tribunal has erred in law and on facts in deleting the disallowance of Rs. 4,01,30,089/made under Section 14 A of the Act in respect of interest expenditure ? [C] Whether the Appellate Tribunal has err ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpugned income is added to the total income of the assessee then also it will be tax neutral exercise. It is because there will not be any change on the tax amount as the assessee is paying tax under the provision of MAT. 21.2 There is no dispute that the impugned income is taxable under the Act, and therefore the same has been offered to tax in the subsequent assessment year. Thus there cannot be any benefit to the Revenue by adding the impugned income to the total income of the assessee in the year under consideration. Hence, we are not inclined to uphold the findings of the authorities below. Accordingly, we set aside the order of the "Ld.CIT(A) and direct the AO to delete the addition made by him. Hence, the ground of appeal of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the addition made by the AO for Rs. 3,84,43,112/in part on account of interest expenses. Thus, the "Ld. CIT(A)" restricted the addition on account of interest expenses amounting to Rs. 16,86,977/only. The "Ld. CIT(A) also upheld the addition made by the AO on account of administrative expenses amounting to Rs. 50,42,189/7.2 Regarding the disallowance of the interest expenses, admittedly the interest income exceeds interest expenditure claimed in the profit and loss accounts. IN fact there was no interest expenditure claim by the assessee in the profit and loss account. The disallowance of the interest income and interest expenditure stands as under: Particulars Amount Rs. Interest Income 32,05,71,036/ Interest Income from Partnersh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 130.02 Crores. Thus, essentially, there is excess of interest earned over interest expenditure. It is the contention on behalfof the assessee that in view of these facts it cannot be said that the assessee has claimed any expenditure on interest per se. It is thus, the case of the assessee that netting of interest income and outgo is required to be done while invoking Rule 8D (2)(ii) of the IT Rules in the light of the decision of the Hon'ble Gujarat High Court in the case of Pr.CIT Vs. Nirma Credit & Capital (P.) Ltd. [2017 85 Taxmann.com 72 (Gujarat)]. In view of the decision of the Hon'ble Gujarat High Court holding that interest earned by the assessee is required to be factored for the purpose of ascertaining the amount of expen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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