9911796707
TMI Blog2024 (7) TMI 790X X X X Extracts X X X X X X X X Extracts X X X X ..... . [ 2010 (11) TMI 645 - MADRAS HIGH COURT] and Cethar Ltd., [ 2014 (9) TMI 831 - MADRAS HIGH COURT] - HONOURABLE MR. JUSTICE BHARGAV D. KARIA AND HONOURABLE MR. JUSTICE NIRAL R. MEHTA Appearance: For the Appellant(s) No. 1 : Mr Nikunt K Raval (5558) For the Opponent(s) No. 1 : Mr B.S. Soparkar (6851) ORAL ORDER (PER : HONOURABLE MR. JUSTICE NIRAL R. MEHTA) 1. This Tax Appeal, filed under section 60A of the Income Tax Act, 1961 [ the Act for short] is arising out of order dated 03.06.2022 passed by the Income Tax Appellate Tribunal, Ahmedabad in ITA No. 560/AHD/2020 for the Assessment Year 2013-14 by raising following substantial questions of law: (i) Whether the Ld. Tribunal has erred in deleting the addition made under section 14A r.w.r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -and disallowances of deduction under section 80IA (4) of Rs. 4,07,76,334/- was made because of assessment proceedings. 2.2 The Assessing Officer noticed that the assessee has claimed deduction under section 80IA (4) of the Act of Rs. 4,07,76,334/- in the original return of income from its captive power plant at Baroda. The Assessing Officer thereafter rejected the entire deduction under section 80IA (4) being excessive and unreasonable and added the same to the income of the assessee. 2.3 Aggrieved by the aforesaid, the assessee filed appeal before the learned Commissioner of Income Tax(Appeals). The CIT(A) directed the Assessing Officer to restrict disallowance under section 14A of the Act to Rs. 77,649/- and on the issue of deduction und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee's own funds, e, equity, reserve and surplus funds amounting to Rs. 32,699.06 lakhs far exceed the tax free investments. The Impugned investments are old and out of own funds have not been rebutted. Relying on the Hon'ble Gujarat High Court judgments in the case of Hitachi Home and Life Solutions (1) Ltd (supra). Torrent Power Ltd (supra)'and other judgments mentioned above, we are of the view that when the assessee possesses own' funds much more than the tax-free investments, the disallowance u/s 14A read with Rule D cannot be made. There is also merit in the plea of ld. Counsel on the count that the burden of establishing the nexus nas been wrongly attributed to the assesses and it was for the Assessing Officer t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h decisions in the assessee's own case cited (supra), we dismiss this ground of appeal of the Revenue. 11. So far as second issue is concerned, the Id. Senior Advocate for the assessee submitted that, the issue of disallowance under section 80IA (4) of the Act, the Revenue's appeal in Tax appeal No. 1249 of 2014 dated 20.7.2016, the Revenue has raised the following two question of law: (i) Whether on the facts and in the circumstances of the case and in law, the ITAT was justified in upholding the decision of CIT(A) that deduction u/s. 80-1A(4) is allowable to the assessed for generation of power for captive consumption? (ii) Whether the Tribunal was right in law in allowing the assessee's claim of deduction of Rs. 1954 crores u ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
