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TMI Blog2021 (6) TMI 610X X X X Extracts X X X X X X X X Extracts X X X X ..... rest free funds viz-a-viz investments made. Since, the issues raised in present appeal are identical, additional ground No.1 2 are allowed for statistical purposes in similar terms. The Assessing Officer is directed to re-examine disallowance under section 14A r.w.r.8D in line with above directions of the Tribunal. Disallowance of provision made for leave salary under section 43B(f) - HELD THAT:- As decided in own case [ 2020 (3) TMI 942 - ITAT MUMBAI] Tribunal allowed relief to the assessee by following the decision of the Hon ble Apex Court in the case of Bharat Earth Movers vs. CIT[ 2000 (8) TMI 4 - SUPREME COURT] Dehors the issue of constitutional validity of clause(f) to section 43B of the Act, the Co-ordinate Bench after cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itional Ground No.1 2 and Ground No.3 of the original grounds of appeal. 3. Now, the grounds before us for adjudication are as under:- Additional Grounds: 1. On the facts and in the circumstances of the case and in law, the learned AO has erred in disallowing the Interest cost of ₹ 59.66 Crs u/s 14A, on borrowing for acquisition of shares of Idea Cellular Limited. The AO may be directed to reduce the disallowance u/s 14A accordingly. 2. On the facts and in the circumstances of the case and in law, the learned AO has erred in disallowing the allocated interest cost of ₹ 20.36 Crs u/s 14A out of borrowings taken for general purpose. The AO may be directed to reduce the disallowance u/s 14A accordingly. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cisions: (i) PCIT vs. Ashok Apparels (P) Ltd., 106 taxmann.com 63(Bom) (ii) CIT v. HDFC Bank Ltd., 366 ITR 505(Bom) (iii) HDFC Bank Ltd. V DCIT, 383 ITR 529 (Bom) The ld.Counsel for the assessee submitted that the additional ground raised in present appeal with regard to disallowance under section 14A of the Act is identical to the ground raised in appeal by the assessee for assessment year 2010-11 in ITA No.4220/Mum/2015 decided on 24/02/2020. The Tribunal has restored the issue back to the file of Assessing Officer for the purpose of verification of facts. In respect of ground No.3 raised in original grounds of appeal, the ld.Counsel for the assessee submitted that the Co-ordinate Bench of the Tribunal in immediately preced ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... investments are made from interest free funds available with the assessee. We find that similar plea was raised by the assessee in assessment year 2010-11. The Co-ordinate Bench restored the issue back to the file of Assessing Officer to examine the availability of assessee s own interest free funds viz-a-viz investments made. The relevant extract of the findings of Tribunal on the issue are as under: 5.2 The second contention of the assessee is that no disallowance u/r.8D(2)(ii) is warranted as the assessee is having own interest free funds in the shape of share capital, reserves surplus and profits more than the investments made. Hence, there is no interest expenditure. The assessee by way of additional ground of appeal is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the case of ACIT vs.Vireet Investments Pvt. Ltd.(supra). The assessee has filed fact sheet listing the investments where the assessee has earned dividend income. We deem it appropriate to restore this issue to the file of Assessing Officer for recomputation of disallowance u/r.8D(2)(iii) in line with the decision of Special Bench in the case of DCIT vs. Vireet Investments Pvt. Ltd.(supra). Thus in view of our above finding, ground No.1 and additional ground No.1 of the appeal by the assessee are partly allowed for statistical purpose. Since, the issues raised in present appeal are identical, additional ground No.1 2 are allowed for statistical purposes in similar terms. The Assessing Officer is directed to re-examine disallowanc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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