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TMI Blog2023 (12) TMI 1375X X X X Extracts X X X X X X X X Extracts X X X X ..... - SUPREME COURT] we direct Ld. AO to examine this aspect of the matter and apply the ratio of the decision to the case of the assessee. If the disallowance as computed by Ld. AO falls below the suo-motu disallowance as offered by the assessee, no further disallowance would be called for. Adjustment of this item u/s 115JB - As we find that this issue is covered in assessee s favor by the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssue of disallowance u/s 14A, Ld. AR submitted that Tax free Bonds which have been considered in the computations, constitute stock-in-trade for assessee bank and the same is to be excluded as per the decision of Hon ble Supreme Court in the case of South Indian Bank Ltd. vs. CIT (130 Taxmann.com 178). The Ld. AR submitted that if this item is removed, the disallowance would fall much below suo-mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upreme Court in the case of South Indian Bank Ltd. vs. CIT (130 Taxmann.com 178), at para 25, held as under: - 25. Proceeding now to another aspect, it is seen that the Central Board of Direct Taxes (CBDT) had issued the Circular no. 18 of 2015 dated 2-11-2015, which had analyzed and then explained that all shares and securities held by a bank which are not bought to maintain Statutory Liquidity R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be business income. That is why section 14A would not be attracted to such income. Considering the ratio of aforesaid decision, we direct Ld. AO to examine this aspect of the matter and apply the ratio of the decision to the case of the assessee. If the disallowance as computed by Ld. AO falls below the suo-motu disallowance as offered by the assessee, no further disallowance would be called fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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