2017 (11) TMI 1942

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....12 to 2013-14. The Revenue has filed appeals for A.Y. 2010-11 to 2013-14. All these appeals are directed against the orders passed by the learned CIT(A)-1, Thane. All these appeals were heard together and are being disposed of by this common order, for the sake of convenience. 2. We shall first take up the appeals filed by the assessee. The solitary issue urged in both the appeals and cross objections filed by the assessee relates to disallowance made u/s. 14A of the Act. The Assessing Officer noticed that the assessee has received exempt dividend and capital gains, but did not make any disallowance u/s. 14A of the Act. Hence the Assessing Officer computed disallowance u/s. 14A of the Act and accordingly disallowed the interest and admin....

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....71.79 9.87 2436.92 21.26 2012-13 0.95 1.47 0.10 978.06 21.26 2013-14 0.05 2.26 0.10 797.79 18.98 6. Perusal of the above said table would show that the own funds available with the assessee is in excess value of mutual funds held by the assessee. Other investments made by the assessee consisted of fixed deposits made with the Bank and investment made in shares of Cooperative Bank, income from both of which is not exempt. Since own funds available with the assessee is in far excess of value of investment made in mutual funds, there is merit in the contentions of the assessee that the disallowance of interest expenditure is not called for, in view of the decision of Hon'ble Bombay High Court....

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....al No. 114 of 2012). The learned CIT(A) was convinced with contentions of the assessee and accordingly deleted the additions made u/s. 2(22)(e) of the Act. The Revenue is aggrieved by the decision of the learned CIT(A). 8. Learned Departmental Representative submitted that the decision rendered by Hon'ble Bombay High Court has since been challenged by the Revenue by filing SLP before Hon'ble Supreme Court. 9. On the contrary, learned AR submitted that Hon'ble Supreme Court has since decided identical issue in the case of CIT Vs. Madhur Housing and Development Company (Civil Appeal No. 3196 of 2013) has held that addition of deemed dividend u/s. 2(22)(e) of the Act can be made only in the hands of shareholders, meaning ther....