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TMI Blog2024 (9) TMI 205X X X X Extracts X X X X X X X X Extracts X X X X ..... ore opportunity to present the documents. Accordingly, we set aside the order passed by the CIT(A) on this issue and restore the same to his for adjudicating the same afresh, by duly considering the evidences that may be furnished by the assessee. Addition made u/s 14A r.w.r. 8D - assessee submitted that it did not incur any expenses in earning the exempt income - AO did not accept the same - HELD THAT:- Assessee is having own funds exceeding the value of investments. Hence, as per the decision rendered in the case of HDFC Bank Ltd. [ 2016 (3) TMI 755 - BOMBAY HIGH COURT ] AO could not have disallowed interest expenses - we are of the view that this issue also requires fresh examination at the end of Ld CIT(A). Accordingly, we set aside the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... noticed that the company TCRPL has also held shares in THPL. 4. During the year under consideration, TCRPL sold the shares held by it in THPL to the third company mentioned above, i.e., TPPL. The total sale consideration for sale of shares was determined at Rs. 96.75 lakhs, out of which it received a sum of Rs. 61.75 lakhs during this year. Balance amount of Rs. 35.00 lakhs was shown as receivable as on 31-03-2013 in the books of M/s. TCRPL. The AO took the view that the above said amount of Rs. 35.00 lakhs is in the nature of loans and advances given by M/s. TCRPL to M/s. TPPL. 5. Under the provisions of sec 2(22)(e) of the Act, any payment by a closely held company of any sum by way of advance or loan to a shareholder, being a person who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e not attracted to these transactions. Hence, the Ld.CIT(A) called for evidences in the form of documents, agreements etc., to support the contentions of the assessee. However, the assessee did not furnish any documents that were called for by the Ld.CIT(A). Hence, the Ld.CIT(A) confirmed the order of AO on this issue. 8. Before us, the Ld.AR reiterated that the transactions entered between both the private limited companies are commercial transactions and they are not in the nature of loans or advances as contemplated in sec. 2(22)(e) of the Act. However, when it was pointed out that the assessee has not furnished any documents before the Ld.CIT(A) in support of the above said submissions, the Ld.AR sought for an opportunity to furnish tho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the assessee did not incur any expenses in earning above said exempt incomes. The AO also did not verify the claim of the assessee and record dissatisfaction, having regard to the books of accounts. Further, the assessee is having own funds exceeding the value of investments. Hence, as per the decision rendered by Hon ble Bombay High Court in the case of HDFC Bank Ltd, the AO could not have disallowed interest expenses. He submitted that the AO did not consider judicial precedents in computing disallowance out of expenses also. 12. We heard Ld.DR. Having regard to the submissions made by Ld. AR, we are of the view that this issue also requires fresh examination at the end of Ld CIT(A). Accordingly, we set aside the order passed by him o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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