2014 (1) TMI 338

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....r 2009-10. 2. Shri P.Dam Kanunjna, JCIT, Sr.DR represented on behalf of the Revenue and Shri S.P.Choudhury, Advocate represented on behalf of the assessee. ITA No.1313/Kol/2012 (A.Yr.2007-08): 3. In this appeal the Revenue has raised the following grounds :- "1. That on the facts and circumstances of the case, the learned ld.CIT(A) erred in deleting the disallowance of Rs.46,07,000/- made u/s 14A r.w.r. 8D without appreciating the fact that it was for the assessee to prove by producing material on record that no interest bearing fund was utilized for investments. 2. That the order of the A.O. be upheld in view of the judgement of jurisdictional Tribunal in the case of Dhanuka & Sons Vs CIT (Central)-I, Kolkata [12 Taxman.Com 227 (CAL)2....

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.... assessee does not have any income which does not form part of the total income. Further it is also noticed that the ld. CIT(A) has taken into consideration the fact that the investment in the shares of subsidiary company was only for the purpose of having control over the business affairs of the subsidiary company which was being maintained as subsidiary company for specific business purposes of the assesee. Further the assessee has also not incurred any interest expenditure attributable to the said investment in the shares. In the circumstances we are of the view that provision of Section 14A read with Rule 8D does not apply to the assessee's case. However, as the assessee has not filed any appeal against the order of the ld. CIT(A) the d....

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....aring." 9. In respect of ground nos.1 and 2 of the Revenue's appeal the ld. AR drew our attention to page 19 of the paper book which shows bad debt written off under the head Administrative expenses schedule to Accounts . It was submitted by the ld. AR that in view of the decision of the Hon'ble Supreme Court in the case of TRF Limited vs CIT reported in 323 ITR 397 (SC) the bad debts as deleted by the ld. CIT(A) was liable to be sustained. 10. In reply the ld. DR vehemently supported the order of the AO. 11. We have considered the rival submissions. As it is noticed that the issue of bad debt is now squarely covered by the decision of the Hon'ble Supreme Court in the case of TRF Limited vs CIT referred to supra the findings of the ld. C....