AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2022 (6) TMI 474
X X X X Extracts X X X X
X X X X Extracts X X X X
....wance made under section 14A r.w. Rule 8D. 2. Brief facts of the case are that the assessee is engaged in the business of investment and finance and filed its return of income for the assessment year 2013-14 on 28.09.2013 admitting a total income of Nil after computing a business loss of Rs..3,45,01,882/-. The case was selected for scrutiny. A notice under section 143(2) of the Income Tax Act, 1961 ["Act" in short] dated 03.09.2014 was served on the assessee. After following due procedure and considering the submissions of the assessee, the Assessing Officer has completed the assessment under section 143(3) of the Act dated 16.03.2016 assessing total income of the assessee at Rs..1,37,04,933/- after making disallowances under section 14A o....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Rule 8D of Rs..3,21,97,329/-, the ld. CIT(A) has observed that the disallowance in this case has to be restricted to the amount of dividend earned at Rs..2,04,12,283/- in view of the decision of the Hon'ble Delhi High Court in the case of Joint Investments P. Ltd. v. CIT (supra). Further it was observed that having regard to the fact that the assessee had offered voluntary disallowance of Rs..19,22,139/- and the same has to be reduced for the purpose of working the net disallowance which in this case is worked out at Rs..1,84,90,144/- [Rs..2,04,12,283 - Rs..19,22,139]. Accordingly, the ld. CIT(A) has rightly directed the Assessing Officer to modify the disallowance under section 14A of the Act. We find no infirmity in the order of the ld. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ame. The interest was stated to have been fully offered to Income tax by the lender. It was also stated that this transaction was done in the normal course of business and cannot be attributed to deemed dividend under section 2(22)(e) of the Act. Since the interest income was fully offered to tax in the case of M/s. Aban Infrastructure Pvt. Ltd,, the assessee has submitted that the same should not be again disallowed under section 2(22)(e) of the Act. After considering the submissions of the assessee, the Assessing Officer has held that the loans and advances received by the assessee from M/s. Aban Infrastructure Pvt. Ltd. amounting to Rs..1,19,00,031/- were held as deemed dividend within the meaning of section 2(22)(e) of the Act and added....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed before the ld. CIT(A) that the loan received were in the nature of inter corporate deposits advanced in the course of business and interest has been charged by both the companies. Such deposits therefore would not constitute loans & advances contemplated u/s 2(22)(e) of the Act. After considering the submissions of the assessee as well as shareholding pattern given in the assessment order, the ld. CIT(A) has observed that since the individuals being shareholders viz., Saley Abraham, Deepa Reji Abraham, Shema Renny Abraham holding more than 10% shares in one of the three concerns or some of the concerns as has been tabulated in the assessment order, the deemed dividend would therefore arise in the hands of these shareholders, if any. As r....
X X X X Extracts X X X X
X X X X Extracts X X X X
....section 2(22)(e) of the Act would not apply. The ld. DR could not controvert the above decisions of the Tribunal, which were relied upon by the ld. CIT(A). Under the above facts and circumstances, we are of the considered opinion that the ld. CIT(A) has rightly rejected the view taken by the Assessing Officer in bringing the loans and advances received by the assessee as deemed dividend within the meaning of section 2(22)(e) of the Act. Thus, the ground raised by the Revenue is dismissed for the assessment year 2012-13. 3.2 Respectfully following the decision of the Coordinate Benches of the Tribunal in assessee's own case for earlier assessment years, we sustain the order of the ld. CIT(A) and the ground raised by the Revenue is dismissed....
X X X X Extracts X X X X
X X X X Extracts X X X X
....al preferred before the Hon'ble Supreme Court has not been attained its finality, the case law relied on by the Revenue has no application to the facts of the present case. 4. The next ground raised in the appeal of the Revenue relates to deletion of disallowance of interest income of Rs..64,501/-. The assessee company has advanced a sum of around Rs..105.5 crores to M/s. Aban Offshore Ltd. and earned interest income of Rs..8,47,64,125/- thereon. The assessee has advanced the above amount by utilizing the loans obtained. The assessee has incurred a total interest expenditure of Rs..11,74,63,766/- on the above loans. As per the provisions of section 14A of the Act, the direct interest expenses towards earning the exempt income is Rs..3,27,6....