2020 (9) TMI 877

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....E APPELLANT ORDER ( PER : HONOURABLE MR. JUSTICE J. B. PARDIWALA ) 1. This Tax Appeal under Section 260A of the Income Tax Act, 1961[for short, 'the Act, 1961'] is at the instance of the Revenue and is directed against the order passed by the Income Tax Appellate Tribunal, Ahmedabad Bench 'B', Ahmedabad dated 20th August, 2019 in the ITA No.3982/Mum/2018 for the A.Y. 20141....

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....assessee had made investment to the tune of Rs. 1,44,25,14,851/- on 1 st April, 2013. The Assessing Officer noticed that the assessee had not made any disallowance under Section 14A read with Rule 8D of the Income Tax Rules in respect of any expenditure incurred for the aforesaid investment. The case of the assessee before the Assessing Officer was that the interest free funds were used for invest....

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.... the assessee. 5. The assessee being dissatisfied with the assessment order went in appeal before the CIT(A). The CIT(A) deleted the addition relying upon the decision of the Supreme Court dated 12th February, 2018 in the case of Maxopp Investment Ltd. Vs. Commissioner of Income Tax, New Delhi & Others. 6. The Revenue being dissatisfied with the order passed by the CIT(A) went in appeal befo....

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.... dictum as laid by the Supreme Court in the case of Maxopp Investment Ltd.(supra). In Maxopp Investment Ltd.(supra), the Supreme Court held that as the assessee had not made any claim for the exemption of any income from payment of tax, the disallowance under Section 14A of the Act cannot be made. To attract the provisions of Section 14A of the Act, 1961, it is necessary that the assessee shoul....