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TMI Blog2021 (6) TMI 893X X X X Extracts X X X X X X X X Extracts X X X X ..... axmi Prasad Sahu, Member (A) For the Appellant : Nikhil Kanadia For the Respondents : Rohit Mujumdar ORDER Laxmi Prasad Sahu, Member (A) This appeal filed by the assessee is directed against CIT(A) - 3, Hyderabad's order dated 14/10/2019 for AY 2016-17 involving proceedings u/s. 143(3) of the Income Tax Act, 1961; in short the Act on the following grounds: 1. The Ld. AO and the Ld. CIT(A) erred in law and in fact invoking and retaining the disallowance u/s. 14A of the Act without appreciating the facts of the case. 2. The Ld. CIT(A) erred in not adjudicating on the ground that the investments were made out of own funds, while agreeing that the investments were lower than the surplus funds. 3. The L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -16 considering directions of Hon'ble DRP in the case of M/s. Rain Cements Ltd. for AY 2011-12. Accordingly, he made the disallowance u/s. 14A at ₹ 1,86,77,787/-. 3. When the assessee preferred an appeal before the CIT(A), the CIT(A) after considering the submissions of the assessee, restricted the disallowance to ₹ 1,06,73,021/- applying rule 8D. 4. The ld. AR of the assessee submitted that the disallowance made u/s. 14A has been decided by the coordinate bench of this Tribunal assessee's own case for AY 2012-13 in ITA No. 1728 1729/Hyd/2016, for AY 2012-13, dated 31/01/2018. 5. On the other hand, the ld. DR neither controverted the submission of AR nor brought any contrary decision in this regard. 6. We h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concessional rate. The benefit derived by the assessee by virtue of investment is not dividend income but gets power at subsidized rates. This benefit is not exempt from tax. Therefore, this investment should be excluded from calculation of rule 8D(2)(iii). 10. Ld. DR, on the other hand, relied on the orders of revenue authorities. 11. Considered the rival submissions and perused the material on record. With regard to investment in APGPCL, the coordinate bench has remitted this issue back to the file of the AO to verify the contention of the assessee and, if, found correct, the investment should be excluded from the calculation under rule 8D(2)(iii). Therefore, we are also inclined to remit this issue back to the file of the AO t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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