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of <h1>Revenue's appeals on disallowance of bank charges for working capital loan dismissed under Income Tax Act Section 14A.</h1> <h3>The Principal Commissioner of Income Tax-3, Ludhiana Versus Malwa Industries Limited, Ludhiana</h3> The High Court dismissed the revenue's appeals regarding the disallowance of bank charges for processing a working capital loan and under Section 14A of ... Disallowance of bank charges paid for processing of the working capital loan - HELD THAT:- Issue covered by the judgment of this Court in The Principal Commissioner of Income Tax-3, Ludhiana v. M/s Malwa Industries Ltd., Ludhiana 2015 (9) TMI 1361 - PUNJAB AND HARYANA HIGH COURT] Disallowance u/s 14A r.w.r. 8D - HELD THAT:- Issue covered by the decision of this Court in Commissioner of Income Tax, Jalandhar-I, Jalandhar v. M/s Max India Limited [2016 (11) TMI 1012 - PUNJAB AND HARYANA HIGH COURT]. Issues:- Disallowance of bank charges for processing working capital loan- Disallowance under Section 14A of the Income Tax ActDisallowance of Bank Charges for Processing Working Capital Loan:The appeal under Section 260A of the Income Tax Act, 1961 was filed by the revenue against the order passed by the Income Tax Appellate Tribunal. The Tribunal had deleted the disallowance of bank charges of a specific amount paid for processing the working capital loan. The assessee, engaged in the manufacturing and trading business, had filed a return declaring a total loss for the assessment year. The Assessing Officer had made various disallowances, including bank charges under Section 37(1) of the Act. The Commissioner of Income Tax (Appeals) partly allowed the appeal, deleting certain disallowances, including the one related to bank charges. The Tribunal upheld the decision of the CIT(A) in deleting the disallowance of bank charges. The High Court noted that the issue was covered by previous judgments, and accordingly, the appeal by the revenue was dismissed.Disallowance under Section 14A of the Income Tax Act:Another substantial question of law involved the disallowance made under Section 14A of the Income Tax Act, read with Rule 8D of the Income Tax Rules. The CIT(A) had partly allowed the appeal, deleting the disallowance made under this section. The revenue filed an appeal before the Tribunal challenging this disallowance, which was dismissed by the Tribunal. During the hearing, it was acknowledged that this issue was covered by a previous decision of the High Court. The High Court noted that the present appeals were also similar to the previous cases and, accordingly, dismissed the appeals by the revenue.In conclusion, the High Court, consisting of Mr. Ajay Kumar Mittal and Mrs. Manjari Nehru Kaul, JJ., dismissed the appeals by the revenue, as the issues raised were found to be covered by previous judgments of the Court. The detailed analysis of each issue, including the disallowance of bank charges for processing the working capital loan and the disallowance under Section 14A of the Income Tax Act, highlighted the decisions made by the lower authorities and the subsequent appeals leading to the final judgment.
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