2017 (8) TMI 1313

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....) of the Income Tax Act, 1961 (in short "the Act") dated 15.03.2013 for the Assessment Year 2010-11. 2. The only issue to be decided in this appeal is as to whether the Ld. CIT(A) was justified in deleting the disallowance made u/s 14A of the Act in the sum of Rs. 39,73,576/- in the facts and circumstances of the case. 3. The brief facts of this issue are that the assessee is engaged in the business of investment in shares, debentures, government securities under investment portfolio, dealing with speculation/derivatives in shares, financing, commission agent and merchant and had filed its return of income on 30.10.2010 for the assessment year 2010- 11 declaring total income of Rs. 8,42,27,182/-. The Ld. AO during the course of assess....

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....sessee and by duly appreciating the various case laws in that regard observed that there is no case for making any disallowance under second limb of Rule 8D(2) towards interest as sufficient own funds were indeed available with the assessee. With regard to third limb , he observed that the assessee herself voluntarily disallowed a sum of Rs. 5 lacs and hence, no further disallowance is called for. Aggrieved, the revenue is in appeal before us on the following grounds:  (i) In the facts and circumstances of the case, the Ld. CIT(A) erred in allowing the appeal of the assessee on the ground that the net result of interest/expenditure was positive income & further no head of expenditure was attributable to earning exempt income. ....