9911796707
TMI Blog2021 (4) TMI 572X X X X Extracts X X X X X X X X Extracts X X X X ..... he disallowance u/s 14A of I.T. Act being expenses relatable to income not includible in total income and on the issue of allowability of claim of deduction u/s 36(1)(viia) of the Act. 2. The Ld.CIT(A) has erred in law and in facts in restricting the disallowance u/s 14A made by the assessee itself, whereas the disallowance u/s 14A r.w. Rule 8D(2)(ii) made by the A.O. was under the observation that the investment in tax free securities/funds, were made out of common pool of funds comprising more than 90% interest bearing funds. Besides, the assessee failed to establish nexus between investment in exempt securities and interest free funds. 3. The Ld.CIT(A) has erred in law and in facts in on the issue calculation of allowability the dedu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assed by the assessee and found no reasons to sustain the disallowance of Rs. 1,55,24,593/- made by the AO out of interest expenditure over and above an amount of Rs. 13,05,497/- suo-motu made by the assessee. In coming to his conclusion, the CIT(A) noted that a similar view was upheld in the appellate proceedings in assessee's own case for Assessment Years 2003-04, 2004-05 and 2005-06. 4. In this background, the learned Representative of the respondent-assessee pointed out before us that so far as the orders of the Tribunal for Assessment Years 2003-04, 2004-05 and 2005-06 are concerned, they continue to hold the field inasmuch as the Hon'ble High Court of Uttarakhand, in ITA No.40 of 2009 and ITA No.51 of 2009 vide Orders dated 26th Dece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue in this appeal is concerned, the same emanates from the action of the AO in scaling down the deduction claimed by the assessee under Section 36(1)(viia) and Section 36(1)(viii) of the Act of Rs. 16,76,198/- and Rs. 63,98,257/- respectively. On this aspect, the assessee canvassed before the CIT(A) that there was a mistake in the computation of the respective deductions both at the end of the assessee as well as that of the AO. The CIT(A), in paragraph 4.2 of his order, has noted the submissions of the assessee in this regard. The assessee further submitted that the manner of computation of the deduction under Section 36(1)(viia) and 36(1)(viii) of the Act be decided in the light of the Order of Delhi Bench of the Tribunal in Tourism Fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the principle adopted by the CIT(A) is the correct legal position which continues to hold the field. It was pointed out that even the AO has followed the same principle while completing the assessments for Assessment Year 2012-13 and 2014-15, and copies of such assessment orders have also been annexed in the Paper Book filed before us. It was, therefore, contended that the order of learned CIT(A) does not require any interference. 10. On the other hand, learned DR reiterated the stand of the AO but fairly did not controvert the factual matrix brought out by respondent-assessee. 11. After hearing both the sides, it is seen that the controversy regarding the quantum of eligible deduction allowable to a banking company under Section 36(1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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