TaxTMI 
TaxTMI 
2016 (7) TMI 1275
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....everal grounds in its appeal, however, the crux of the issue is as follows:- "The learned Commissioner of Income Tax (Appeals) has erred in deleting the addition of Rs. 86,62,748/- made by the learned Assessing Officer by invoking the provisions of section 14A r.w.r 8D." 3. Brief facts of the case are that the assessee is a company engaged in the business of trading, clearing and forwarding filed its return of income for the assessment year 2011-12 on 29.02.2012 admitting income of Rs. 17,58,71,418/. Subsequently, the case was taken up scrutiny and assessment was completed under section 143(3) of the Act on 10.03.2014, wherein the learned Assessing Officer invoked the provisions of section 14A of the Act and computed the disallo....
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....CIT (Supra) the Hon'ble Delhi High Court held that disallowance u/s 14A envisages that there should be a actual receipt of income, which is not includible in the total income, during the relevant previous year for the purpose of disallowing any expenditure incurred in relation to the said income. In other words, s.14A will not apply if no exempt income is received or receivable during the relevant previous year(para 23). 7. Taking the sum totality of the ratios in the foregoing into account, I am of the considered view that the case of the appellant has to be considered in the light of the said ratios. As the appellant has not earned any income from dividend from its investments made during the year, no disallowance can be comp....
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.....115/Mds/2015 dated 06.01.2016 is reproduced herein below for reference:- "5. We have heard both the parties and carefully perused the materials available on record. On the identical issue as pointed out by the Ld. A.R. the Chennai bench of the Tribunal in ITA No.156/Mds/2013 vide order dated 20/08/13 for the assessment year 2009-10 has remitted back the matter to the Ld. Assessing Officer to decide the matter once again afresh based on the findings whether the assessee had actually incurred any expenditure in earning the dividend income. The relevant portion of the order is extracted herein below for reference:- Further, on the identical issue various Benches of the Tribunal and the Hon'ble Bombay High Court have held as follows:-....
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....e to show that no expenditure has been incurred for maintaining the 98% of the investment made in the subsidiary companies, therefore, in the absence of any finding that any expenditure has been incurred for earning the exempt income, the disallowance made by the Assessing Officer is not justified, accordingly the same is deleted." (iv) CIT Vs. Bharti Televenture Ltd. reported in (2011) 331 ITR 0502. "Where the assessee was found to be having adequate noninterest bearing fund by way of share capital and reserves and there was no nexus between the borrowals of assessee and the advances given, no disallowance for interest was called for." (v) CIT Vs. Reliance Utilities & Power Ltd., reported in (2009) 313 ITR 0340(B....
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....o.156/Mds/13 cited supra, we hereby remit the matter back to the file of Ld. Assessing Officer to examine the issue involved in this case afresh and pass appropriate order as per law and merits and in the light of the decisions cited herein above. While doing so, we also direct the Ld. Assessing Officer to consider the decision of the Tribunal in the case M/s Agile Electric Sub Assembly Pvt. Ltd. cited supra wherein it was held as follows:- '"7.2 In regard to applicability of Section 14A of the Act read with Rule 8D also; the above view will be applicable. Moreover in the case EIH Associated Hotels Ltd v. DCIT reported in 2013 (9) TMI 604 in ITA No.1503, 1624/Mds/2012 dated 17th July, 2013, it has been held by the Chennai Ben....