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TMI Blog2022 (9) TMI 376X X X X Extracts X X X X X X X X Extracts X X X X ..... ndustries Ltd [ 2017 (5) TMI 1160 - GUJARAT HIGH COURT] and India Gelatine Chemicals Ltd [ 2015 (11) TMI 392 - GUJARAT HIGH COURT] there is no illegal infirmity in the impugned order passed by the Tribunal while deleting the dis-allowance under section 14A - no question of law much less any substantial question of law proposed or otherwise arises from the impugned order of the Tribunal. The Appeal accordingly stands dismissed. - R/TAX APPEAL NO. 349 of 2022 - - - Dated:- 1-8-2022 - HONOURABLE MR. JUSTICE N.V.ANJARIA AND HONOURABLE MR. JUSTICE BHARGAV D. KARIA MR.VARUN K.PATEL FOR THE APPELLANT ORAL ORDER (PER : HONOURABLE MR. JUSTICE BHARGAV D. KARIA) 1. This appeal is preferred under section 260A of the Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Managing Director s residence? 3. The issue pertains to disallowance under section 14A of the Act, 1961. The assessee disclosed the tax free income of Rs. 65,36,070/- for assessment year 2006-07 comprising of dividend income and interest on tax free bond. However, there was no administrative expenses incurred since the tax free income was essentially passive income requiring no effort on the part of the assessee. The assessee also did not make an investment during the year in the assets yielding the tax free income. However, the Assessing Officer made ad-hoc disallowance of 10% on the exempt income under section 14A of the Act, 1961 amounting to Rs. 6,53,607/-. 4. The assessee being aggrieved by the additions made by the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ludible in total income i.e. administrative expenses and where the assessee already had its own surplus funds against which minor investment was made, there was no question of making any disallowance of expenditure in respect of interest and administrative expenses under section 14A of the Act, 1961. 8. The Tribunal also referred to the decision in case of Principal Commissioner of Income Tax vs. India Gelatine Chemicals Ltd reported in [2015] 376 ITR 553 (Guj) wherein it is observed that when the assessee had sufficient interestfree funds out of which concerned investment had been made, disallowance under section 14A is not justified. Accordingly, the Tribunal considering the facts of the case arrived at a finding that the direction g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... <![endif]--><!--[if gte mso 10]> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:10.0pt; mso-para-margin-left:0in; line-height:115%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii ..... X X X X Extracts X X X X X X X X Extracts X X X X
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