2020 (9) TMI 578

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....Tribunal, Bench 'C' Chennai in ITA.Nos.458&459/MDS/2015 for the assessment year 2008-09 and 2010-11. These appeals were admitted on 03.04.2018 on the following substantial question of law: ''Whether the Tribunal is right in directing the Assessing Officer to exclude the interest on term loan and cash credit accounts for calculation of disallowance u/s 14A read with Rule 8D though the assessee has made investment out of mixed bag of funds and there is no express provision in section 14A and Rule 8D for such exclusion?'' 2. We have elaborately heard Mr.N.Swaminathan, learned Senior Standing Counsel for the appellant / Revenue and Mr.Vijayaraghavan, learned counsel representing Insolvency Resolution Professi....

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.... been held that where the Assessing Officer made observations under Section 14A of the Act in respect of a dividend income earned by assessee from mutual fund investments, in view of plea raised by assessee that it had utilised only non-interest bearing funds in making investment in mutual funds and interest incurred by assessee was specifically towards acquisition of shares in 'G' Ltd. which company subsequently stood amalgamated with assessee, the impugned disallowance was to be deleted and the matter was to be remanded back to Assessing Officer for disposal afresh. 9. The above decisions were pressed into service by the learned Standing Counsel for the assessee to state that if the Tribunal had chosen to remand the matte....

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....ned order passed by the Tribunal and more particularly paragraph 11, which we have extracted above. The Tribunal, having chosen to remand the matter to the Assessing Officer for a fresh consideration, could have avoided qualifying the remand especially when the questions of law are being raised by both the Revenue as well as the assessee. Therefore, we are inclined to interfere with that portion of the order passed by the Tribunal and remand the matter for a fresh consideration to the Assessing Officer to enable him/her to consider the entire matter afresh without, in any manner, curtailing exercise of his/her power as an Assessing Officer. Further, we find that the Tribunal did not give independent reasons as to why, in its opinion, the di....