2021 (2) TMI 584

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....DER PER RAJPAL YADAV , VICE-PRESIDENT Revenue is in appeal before the Tribunal against order of the ld.CIT(A)-2, Ahmedabad dated 18.7.2018 passed for the Asstt.Year 2015-16, vide which, the ld.CIT(A) has restricted the disallowance under section 14A of the Income Tax Act, 1961. 2. None appeared on behalf of the assessee. Therefore, we proceeded to dispose of the appeal ex parte qua the as....

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....94,334/- and also claimed interest expenditure to the tune of Rs. 99,13,34,126/- on borrowed funds. The ld.AO therefore construed that investment made in shares, out of which exempt income was claimed, would be from the interest bearing borrowed funds. To the show cause notice, it was explained by the assessee that the assessee has interest free fund of Rs. 103,53,86,985/- in the form of shares ca....

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.... exceeded more than the exempt income, as propounded in various authoritative judgments, and that similar claim for earlier years were accepted by the Department. The explanation of the assessee has not been found satisfactory by the AO, and he has observed that explanation given by the assessee was general and no details showing fund flow has been submitted to substantiate its claim, and therefor....

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.... has dividend income of Rs. 4,87,675/-. The ld.AO has worked the disallowance under section 14A at Rs. 90,55,252/- which included interest expenses required to be allocated under section 14A read with Rule 8D. However, on appeal, the ld.CIT(A) has restricted this disallowance to Rs. 4,87,675/-. The finding of the ld.CIT(A) on this aspect reads as under: "3.10. In view of the aforesaid dis....