2018 (2) TMI 1899

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....t : Shri Himanshu Shah, A.R. ORDER PER S. S. GODARA, JUDICIAL MEMBER This Revenue's appeal for assessment year 2009-10 arises against the CIT(A)-9, Ahmedabad's order dated 09.02.2016, in case no. CIT(A)-9/195/DCIT, Cir-5/11-12, reversing Assessing Officer's action inter alia disallowing an amount of Rs. 94,40,092/- u/s. 14A r.w. Rule 8D of the Income Tax Rules hereby adding the same in co....

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....nt as well as the case laws relied upon by the appellant and the order of A.O. The A.O. has made an addition of Rs. 94,40,092/- on account of disallowance u/s.14A r.w. rule 8D of the I.T. Rules. The appellant has received dividend of an amount of Rs. 30,04,274/-. The appellant is claiming that it has not incurred any expenditure in order to earn the said exempt income. During the appellate proceed....

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.... has placed its reliance on the judgment of jurisdictional High Court in the case of UTI Bank Ltd. 32 Taxman.com 370 (Guj.) and CIT vs Suzlon Energy Ltd. 354 ITR 630 (Guj). In both the cases it has. been held that where the assessee has sufficient interest free funds to meet its tax free investment yielding exempt income then it can be presumed that the investments were made from interest free fun....

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....ound of appeal is allowed." 4. Heard both the learned representatives reiterating their respective stands. Case file perused. Mr. Shah at the outset refers to tribunal's order in assessee's cases itself in assessment years 2007-08 and 2008-09 dated 22.06.2016 reversing a similar Section 14A disallowance even after introduction of the computation formula in question under Rule 8D of the Income T....