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2020 (3) TMI 1164
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....ed in disallowing the total interest expenditure of Rs. 10,40,977/- made by the Assessing Officer u/s.14A of the Income Tax Act, 1961 (hereinafter referred to as "the Act"). 3. Brief facts of the case are that assessee has filed his return of income on 31/07/2012 declaring total income of Rs.NIL. The case was picked up for scrutiny and after serving statutory notice and seeking reply of the assessee, Assessing Officer noticed that assessee had borrowed money from various parties and interest thereof Rs. 10,47,877/- and thus made disallowance u/s.14A of the Act. 4. Aggrieved by the order of the AO, assessee preferred an appeal before Ld.CIT(A), who after considering the case of both the parties, dismissed the appeal filed by the assess....
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....n'ble ITA r on following grounds "On the law and facts of the case of your appellant, the Ld. A.O. has erred in disallowing the total interest expenditure of Rs. 10,40,877/- u/s 14A of the Income Tax Act, 1961" 1. Facts In Brief 1.1. Your appellant is an Individual and regularly assessed to Tax at Vadodara. For the Asst. year 2012-13, your appellant had filed his return of income on 31.07.2012 declaring loss of Rs. 85,299/- and claimed refund of Rs. 33,000/- 1.2. The return of income of your appellant consists of income from Salary, capital gain and income from other sources. Copy of acknowledgement of return of income along with statement of income is enclosed herewith at page no. 06 to 08. ....
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....nditure of Rs. 10,40,877/- was incurred for earning profit from firms and therefore in view of decision of the SB of Ahmedabad IT AT in the case of Vishnu Anand Mahajan Vs ACIT disallowed the same u/s. 14Aof the Act 1.8. Therefore your appellant preferred the appeal before the Honourable Tribunal on the ground mentioned above 2. Submission of the Appellant 2.1. The Ld. CIT(A) has disallowed the interest expenses incurred on loans taken for investing in Partnership firms as capital of the appellant. 2.2. The Ld. CIT(A) has disallowed the interest expense in view of decision of the Hon'ble SB of Ahmedabad IT AT in the case of Vishnu Anand Mahajan Vs ACIT 2.3. In this regard, it is humbly submit....
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.... 4. Pr. CIT Vs. Macdonald's India Pvt. Ltd. [2019] 101 taxmann.com 86 (Delhi) 5. PCIT Vs Keshav Power Ltd. (2019) 112 Taxmann.com 324 (SC) 6. CIT Vs. Taikisha Engineering India Ltd. [2015] 229 Taxman 143 (Delhi) 2.7. In the case of Pr. CIT Vs GVK Projects and Technical Services Ltd. (2019) 106 Taxmann.com 181 (SC), the Hon'ble Supreme Court dismissed the SLP filed against the order of the Delhi High Court where the Hon'ble Delhi High Court following the ruling in Cheminvest Ltd. Vs. CIT [2015] 61 taxmann.com 118/378 ITR 33 (Delhi); had held that in the absence of any exempt income disallowance was impermissible and upheld the order of the Delhi Tribunal 2.8. In the case of Cheminvest L....
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....lowance could be made u/s 14A. 2.11. Your appellant is submitting herewith the copies of capital accounts in the partnership firms and copies of return of income along with statement of income of the partnership firm where it can be seen that the appellant has not received any share of profit from partnership firms for the Asst. Year 2012-13. Your appellant is submitting herewith the copies of the same at page no. 12 to 21. 2.12. Therefore during the financial year 2011-12 relevant to Asst Year 2012-13, your appellant has not received any share of profit from the firms and therefore not received any exempt income at all 2.13. Therefore on the basis of above submission and gist of decisions reported, no disallowanc....