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TMI Blog2021 (8) TMI 372X X X X Extracts X X X X X X X X Extracts X X X X ..... Application the contention of the Revenue is that ground No. 2 in the revenue's appeal remained to be unadjudicated. The submission read as under : "Ground No. 2: Addition of disallowance made u/s. 14A to book profits u/s. 115JB Brief facts The disallowance of Rs. 1, 84,26, 413/- calculated u/s. 14A was added to the book profits u/s. 1 15JB of the Act. Aggrieved, the assessee filed appeal before the Ld. CIT(A). The Ld. CIT(A) upheld the addition made by the AO clause (f) of Explanation 1 to section 115JB. However, in alignment with his decision to reduce the quantum of disallowance u/s. 14A from Rs. 1,84,26,413/- to Rs. 16,98,745/-, the Ld. CIT(A) directed that the addition under clause (f) of Explanation 1 to section 115JB also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A)'s order :- "20. We have heard both the counsel and perused the records. As regards disallowance on account of interest, we find that the learned CIT(A) has given the finding that assessee's own funds are sufficient to cover investment earning interest free income. The Assessing Officer has not disputed this claim of the assessee. He has held that the assessee has not been able to bring one- to-one nexus between the available interest free funds the investment earning exempt income. In this regard, we note that Hon'ble Jurisdictional High Court in the case of CIT vs HDFC Bank Ltd., 366 ITR 505 (Bom.) and CIT vs Reliance Utilities & Power Ltd., 313 ITR 340 (Bom.) had expounded that if interest free funds are sufficient to cov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has not accepted the learned CIT(A)'s order and the learned CIT(A) has not adjudicated the issue of lack of satisfaction, we remit this aspect of the issue to the file of the learned CIT(A). The learned CIT(A) is directed to pass a speaking order on this issue raised by the assessee. 6. From the above it is apparent that the Tribunal has not adjudicated ground No. 2 of Revenue's appeal. Learned counsel of the assessee pleaded that this issue is covered in favour of the assessee by Hon'ble Bombay High Court decision that disallowance under section 14A of the Act cannot be imported in section 115JB. We find that in the Miscellaneous Application it is not permissible to decide upon the merits of an issue which has not been adjudicat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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