2013 (1) TMI 187

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.... Somnath Shukla, Advs. JUDGEMENT The revenue claims to be aggrieved by the order dated 23.12.2010 of the ITAT in ITA 1184 and 2460/Del/2008. It urges the following questions of law i.e. (a) whether the Tribunal fell into error in holding that the appellate commissioner's determination vis-a-vis the disallowance under Section 14A of the Income Tax Act was reasonable on the facts of the cas....

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....es (which was Rs.1,14,17,833/-). The revenue's appeal was rejected by the Tribunal. It is contended that the Tribunal and the Appellate Commissioner fell into error in adopting a methodology which is not supported in law. Counsel points to the fact that almost 99% of the assessee's income and activity pertains to tax free income/interest generated and in these circumstances the quantum of disallow....

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....e which included other heads as sale of investments, sale of securities etc. 3. So far as second question i.e. the applicability of Section 79 is concerned, the Tribunal had this to say :     "15. Now examining the present case, we find that IIPL was holding 98% of the shares of the assessee company. On the other hand 100% shares of IIPL were held by four persons of the family....

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....issioner of Income Tax (Appeals)'s adjudication wherein he has referred the Circular No.528 dated 16.12.88 and considered the case of the present merger as akin to death of shareholder. He also held that in the case of death of a living person the shares held by him get transferred to his legal heirs. Similarly when existence of a company is legally finished, the benefit of assets held by it (incl....