TaxTMI 
TaxTMI 
2015 (1) TMI 1286
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....ferred to as "the Act") for Assessment Year 2008-09 vide his order dated 30.12.2010. 2. The first issue in this appeal of revenue is against the order of CIT(A) deleting the disallowance of bank charges and interest amounting to Rs. 12,20,049/- as against the disallowance made by AO at Rs. 18,37,293/- by invoking the provisions of section 14A of the Act read with Rule 8D(2)(ii) & (iii) of the I. T. rules, 1962 (hereinafter referred to as the Rules). For this, revenue has raised following two grounds: "1. That the facts and circumstances of the case CIT(A) erred in excluding interest of Rs. 36,72,000/- being paid to bank while quantifying amount of expenditure by way of interest. 2. that on the facts & circumstances of the case CIT(A) ....
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....ince he wrongly considered the value of land for Rs. 14,70,421/-. The assessing officer also wrongly considered the bank charges of Rs. 12,20,049/- as part of interest. Assessee in the business of mining and sale of coal with turnover of Rs. 45.73 crores. It is contended by A/R that the secured loan was utilized for the purpose of acquisition of assets related to mining business so interest paid to bank should be excluded while computing the disallowance under Rule 8D, keeping the above facts and circumstances the interest paid to others of Rs. 15,84,657/- on loans raised under the head unsecured loans raised (Schedule -18) is relatable to investment on which exempt dividend was earned and accordingly disallowance under Rule 8D(2)(iii) is w....
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....at it has been demonstrated by Ld. Counsel for the assessee that the major secured loans were utilized for the purpose of acquisition of assets relating to mining business and interest paid to the bank is for the purpose of business and not for the purposes of acquiring assets giving exempted income. Accordingly, we are of the view that the CIT(A) has rightly made disallowance of interest and bank charges to the tune of Rs. 12,20,049/- and we confirm the same. This issue of revenue's appeal is dismissed. 5. The next issue in this appeal of revenue is against the order of CIT(A) deleting the disallowance made by AO on account of provisions for bonus u/s. 43B of the Act amounting to Rs. 33,246/-. For this, revenue has raised following ground....