TaxTMI 
TaxTMI 
2023 (6) TMI 669
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....D? 2. Any other ground may be pressed at the time of hearing." 2. Brief facts as stated are that, the assessee is a company, engaged in manufacturing sale of Sponge Iron, Ingots, Billet, TMT, power generation and supply. The case of the assessee for year under consideration was selected for scrutiny through CASS. Statutory notice u/s 143(2) of the I.T. Act was issued. Further, notices along with questionnaire were also issued to the assessee, in response AR of the assessee have attended the hearing from time to time and filed required documents/submissions. The ld. AO during the course of assessment proceeding has examined various issues and aspect of the case and after considering the various facts and circumstances, has made a....
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....ements are reproduced here under: 7. The ld. AR further submitted certain case laws to be relied upon in order to decide the issue in hand. The relevant case laws and observation in the referred case laws are as under:- • South Indian Bank Ltd vs. CIT (2021) 130 taxmann.com 178 (SC), wherein Hon'ble Apex Court has held that: "Income Tax: Where interest free own funds available with assessee-banks exceeded their investments in tax-free securities; investments would be presumed to be made out of assessee's own funds and proportionate disallowance was not warranted under section 14A on ground that separate accounts were not maintained by assessee for investments and other expenditure incurred for earning tax-free incom....
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....tax free securities, then, it would be presumed that investments were made by the assessee out of its own funds and no disallowance would be warranted u/s. 14A r.w Rule 8D(2)(ii) of the Income Tax Rules, 1962 on the ground that separate accounts were not maintained by the assessee for investments and other expenditure incurred for earning of tax free income. 8. Backed by our aforesaid observations, we are unable to persuade ourselves to sustain the disallowance of interest expenditure of Rs. 3,99,790/- made by the Assessing Officer u/s. 14A r.w Rule 8D(2)(ii) of the Income Tax Rules, 1962 which is accordingly vacated. Thus, the Ground of appeal No.2 raised by the assessee is allowed in terms of our aforesaid observations." ....
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....llowed by the Co-ordinate Bench of ITAT, Raipur in the cases relied upon. It was the submission of the AR that the disallowance made was rightly deleted by ld. CIT(A), since, there was sufficient funds available with the assessee to make the investment which is apparent from the statements produced hereinabove. The 2nd of the contention of the ld. AR was that the assessee has earned exempt income of Rs. 46,500/- which is evident from P & L account of the assessee available at page 21 of the assessee's paper book. The ld. AO has wrongly mentioned figure of exempted dividend income as Rs. 1,94,953/- at page 5 of the assessment order. It was the prayer of the ld. AR that since, there were sufficient funds available with the assessee for making....
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....rder in the form of statements of investment, interest etc. filed by the ld. AR, since in the case before us, it was established that no interest bearing funds were used for investment to earn exempted income, no other expenses were incurred to achieve exempted income, the interest paid also has no nexus with the amount of investment in question, however, an exempt income of Rs. 46,500/- was earned by the assessee in the form of dividend earned from long term investments. Therefore, we are of the considered view that disallowance u/s 14A read with rule 8D was not in accordance with law and therefore, the same is liable to be deleted, however, since, the assessee has gained an exempt income of Rs. 46,500/- during the relevant earlier year wh....
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....Shares of Shivalaya Ispat & Power Private Limited 80,59,950 52,79,97,500 64,27,200 44,63,60,000 Advance for purchase of 16,32,750 Equity share of Rs 10 Each in Shivalay Ispat and Power Private Limited. 8,16,37,500 Equity Shares of Real Power Private Limited 27,94,989 14,19,43,560 27,94,989 14,19,43,560 Non Cumulative Redeemable Preference Share of Real Power Private Limited 10,00,000 10,00,00,000 10,00,000 10,00,00,000 Equity Shares of C.G.Sponge Manufactures Consortium Coalfields Private Limited 14,75,826 1,47,58,260 12,123 1,21,230 Equity Shares of Shubh Infrastructure Limited 7,143 71,430 7,143 71,430 Equity Shares of Sarda Energy & Minerals L....