2024 (12) TMI 38

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.... Sr. DR ORDER PER AMARJIT SINGH, ACCOUNTANT MEMBER: This appeal of the assessee for the assessment year 2020-21 is directed against the order dated 11.07.2024 passed by the ld. Commissioner of Income-tax (Appeal), NFAC, Delhi. The assessee has raised the following grounds of appeal: "1. The ld. CIT(A) erred in confirming the disallowance of Rs. 24,51,171/- u/s 14A of the Income T....

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....g total income of Rs. 83,86,110/- was filed on 25.01.2021. The case was subject to scrutiny assessment and assessment u/s 143(3) r.w.s. 144B of the Act was finalized on 13.09.2022. At the time of assessment, the assessing officer observed that assessee had earned gross income from investment made in firms/entities aggregating to Rs. 46,58,393/-. Out of this income share of profit received from the....

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....refore, the AO has determined the interest expenditure of Rs. 24,51,171/- relating to the income claimed as exempt u/s 10(2A) and added to the total income of the assessee. The assessee had made investment as fixed capital in the partnership firms from which exempt income earned was only Rs. 1,56,700/- whereas assessee's own capital as on 01.04.2019 was to the amount of Rs. 2,58,12,759/- which dem....

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....nds and other non-interest bearing funds were more than the investment in tax free securities no disallowance u/s 14A can be made. 7. The ld. Counsel also referred the decision of the ITAT Mumbai in the case of ACIT vs Ankit Arunbhai Shah vide ITA No. 6539/M/2013 wherein after following the decision of the Co-ordinate Bench in the case of ACIT vs Shri Arunabhai Chimanlal Shah vide ITA No. 5999/....