2022 (3) TMI 1419

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....Authority or in short FAA) by which appeal against assessment order dated 31.03.2016 passed by ACIT, Circle 31(1), New Delhi (hereinafter referred to as the Ld. AO) u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") was partly allowed. 2. The brief facts are, assessee is a Multi State Co-operative Society registered under the Multi State Cooperative Societies Act, 2002 and has a branch in Oman (Permanent Establishment in terms of Article 5 of Indo Oman DTAA) which had filed return of income of Rs. 5,62,86,99,340/- which was selected for scrutiny and notice u/s 142(1) of the Act was issued. The Ld. Assessing Officer added 2,57,21,23,225/- as dividend income, Rs 2,43,99,000/- u/s 14A r/w Rule 8D of the Act and Rs....

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....man,which could only be construed to be his opinion and not the position of the Sultanate of Oman, in holding that exemption to dividend was granted to dividends with a view to promote economic development and consequently holding that the assessee was entitled to tax credit under Article 25(4) of the DTAA. 4) Whether on the facts and circumstances of the case, the Ld.CIT(A) was justified allowing the relief on the issue of disallowance/reallocation of interest under section 36(1 )(iii) under the head Work-in-capital/ Investments in relying upon the order of ITAT wherein Hon'ble ITAT had ignored the fact that the assessee was not able to give date wise details so as to demonstrate that only own funds have been utilized for the purp....

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....essee is covered by the judgment of Hon'ble Delhi High Court in Kribhco 395 ITR 572 (Del) and ITAT Delhi order dated 19.09.2016 in ITA No. 2487/Del/2016 for assessment year 2010-11. 4.1.1 In regard to the remaining grounds of appeal no. 4 and 5 it was submitted that the Ld. F.A.A. has rightly concluded that assessee had sufficient own fund to finance its investment and otherwise also it is now well-settled that in a situation whether the assessee has mixed funds and the payment is made out of that mix funds the investment must be considered to have been made out of interest free funds. 5. The Bench has given a thoughtful consideration to the arguments and the matter on record and the ground wise findings are as below. Ground no 1 t....

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....495 to 558 of the Paper Book. On perusal of the same, it is seen that the Revenue has, after thoroughly examining the issues on hand and examining the provisions, considered the dividend income as exempt." 5.3 Thus, this bench of considered opinion that matter rests at peace in regard to these grounds no. 1, 2 & 3 by assessee's own case for the assessment year 2010-11, accordingly these grounds are decided against the revenue. Ground no. 4 and 5 6. In regard to these grounds it can be observed that the Ld. CIT(A) has been fair to follow the principles of law and facts in appellant's own case for assessment year 2010-11 in ITA no. 2487/Del/2016 dated 19.09.2016. It has been consistent finding of fact that assessee has sufficient int....