9911796707
TMI Blog2022 (7) TMI 320X X X X Extracts X X X X X X X X Extracts X X X X ..... for the Revenue ORDER Per Bench This is an appeal filed by the assessee against the order of the ld. CIT(A)-1, Bhubaneswar, dated 14.05.2019 passed in I.T. Appeal No. 0644/16-17 for the assessment year 2015-2016, confirming the disallowance u/s.14A of the I.T. Act, 1961 r.w. rule 8D of I.T. Rules, 1962 as made by the AO. 2. It was submitted by the ld. AR that the assessee had invested Rs. 39 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C). 3. In reply, the ld. CIT-DR submitted that the assessee having borrowed funds for the purpose of making the investments in the sister concern. The disallowance u/s. 14A of the Act if not confirmed, a disallowance u/s. 36(1)(iii) of the Act should be considered by the Tribunal. It was the submission that the assessee had only about Rs. 203 crores in the form of capital and reserves as per the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Finvest India Ltd. [2020] 121 taxmann.com 233 (Karnataka). It was also submitted that admittedly the main disallowance under Section 14A of the Act r.w.r. 8D of I.T. Rules, 1962 were connected with the investment which has earned the exempt income, however, the disallowance computed under rule 8D(2)(ii) did not have any relationship to the exempt income but related to the average value of the open ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s been raised by the AO or the CIT(A) and it is not open to an appellate authority, being the Tribunal, to make a disallowance under the provision which has not been invoked by the AO. It is also to be mentioned here that in an appeal the revenue is fully entitled to defend the order of the AO before the Tribunal. It cannot seek to bring to tax any income or take refuge of any of the other provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owance is to be made and to such extent the disallowance has been made by the AO and confirmed by the CIT(A). Therefore, the addition representing Rs. 1,49,06,500/- stands confirmed. The balance of the disallowance as made by the AO and confirmed by the CIT(A) by invoking the provisions of Section 14A r.w.r. 8D, stands deleted. 6. In the result, appeal filed by the assessee is partly allowed. Or ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
