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TMI Blog2022 (7) TMI 320X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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 provisions of the Act for the purpose of making a fresh addition or disallowance. The assessee admittedly has not received any exempt income. The assessee's investment in its sister concern are claimed by the assessee to be in the business interest of the assessee insofar as the assessee has started its activity in coal also. But the assessee has not been able to point out in the audit report or the balance sheet where it has dealt with in coal. A perusal of the decision of the Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had borrowed funds for the purpose of this investment and had claimed interest outgo of Rs. 8.95 crores. It was the submission that the AO on the ground that the investments made by the assessee could earn dividend income, made the disallowance u/s. 14A r.w.r. 8D. It was the submission that the assessee has not earned any exempt income and consequently no disallowance u/s. 14A r.w.r. 8D is called for. He placed reliance on the decision of Hon'ble Supreme Court in the case of Chettinad Logistics (P.) Ltd., reported in [2018] 257 Taxman 2 (SC) as also the decision of the Hon'ble Supreme Court in the case of GVK Project and Technical Services Ltd. reported in [2019] 264 Taxman 76 (SC). 3. In reply, the ld. CIT-DR submitted that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come but related to the average value of the opening and closing balance of the business. It was the submission that the disallowance to this extent is liable to be confirmed. 4. We have considered rival submissions. 5. Admittedly, as per the balance sheet of the assessee during the relevant assessment year the assessee has traded in cotton yarn only. It has made a profit of Rs. 7 lakhs from trading. It has also derived substantial income in the form of interest. The assessee has set off the interest expenditure from both these business income from trading of yarn and the business income being the income received by the assessee from interest. Coming to the argument of ld. CIT-DR that the disallowance u/s. 36(1)(iii) of the Act is lia ..... X X X X Extracts X X X X X X X X Extracts X X X X
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