2021 (6) TMI 893

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.... retaining the disallowance u/s. 14A of the Act without appreciating the facts of the case. 2. The Ld. CIT(A) erred in not adjudicating on the ground that the investments were made out of own funds, while agreeing that the investments were lower than the surplus funds. 3. The Ld. AO and the Ld. CIT(A) failed to appreciate that the investments are strategic and historic and are made out accumulated profits and not out of borrowed funds. 4. Without prejudice to the above, the Ld. AO and the Ld. CIT(A) erred in computing the disallowance on the investments which were acquired under a scheme arrangement." 2. Brief facts of the case are that the assessee company e-filed its return of income on 28/11/2016 declaring t....

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....ate bench of this Tribunal assessee's own case for AY 2012-13 in ITA No. 1728 & 1729/Hyd/2016, for AY 2012-13, dated 31/01/2018. 5. On the other hand, the ld. DR neither controverted the submission of AR nor brought any contrary decision in this regard. 6. We have considered the rival submissions and perused the material on record. As submitted by the ld. AR, we find that the issue in dispute is squarely covered by the decision of the coordinate bench of this Tribunal in assessee's own case cited supra, wherein the coordinate bench has held as under: "8. As regards ground No. 2 relates to disallowance u/s. 14A of the Act, the AO noticed from the Note 13 of the Balance sheet that the assessee company has investments to....