TaxTMI 
TaxTMI 
2024 (3) TMI 1487
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.... of the Tribunal in ITA No. 1065 and 1248/Mum/2017 dated 28.12.2023 for Assessment Year (AY) 2011-12. 2. The Tribunal in the above order adjudicated various grounds raised by the assessee and the Revenue pertaining to the additions / disallowances made by the Assessing Officer (AO) and the partial relief given by the CIT(A). One of the issues raised and adjudicated by the Tribunal was with regard to the 14A disallowance made by the AO which was partially deleted by the CIT(A). Both the assessee and the Revenue had contended the said issue in the appeal through ground no. 1 (assessee's appeal) and ground no. 1 to 4 (Revenue's appeal). 3. The assessee in the return of income has made a suo-moto disallowance of Rs. 41.68 crores w....
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....e notice that we have adjudicated the issues considering the entire disallowance of Rs. 41.68 crores and no specific findings have been given with regard to interest on specific borrowings and interest on general borrowings separately. Therefore we allow the miscellaneous application filed by the assessee for the limited purpose of adjudicating Ground No. 2 & 3 of the revenue. We accordingly replace the following paragraphs in the place of paragraph no. 49 & 50 of the above order of the Tribunal dated 28.12.2023 - "49. The revenue is in appeal against the relief given by the CIT(A) with regard to the interest on borrowings under section 14A of the Act. Ground No. 1 pertains to the CIT(A) restricting the disallowance to Rs. 17,82,82....
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....rowings has been considered by the Co-ordinate Bench in assessee's own case for AY 2010-11 vide order dated 24.02.2020 and the issue of allowability of interest on specific borrowings by the Co-ordinate Bench in assessee's own case for AY 2010-11 vide order dated 22.08.2023. The relevant findings of the Tribunal on both the issues are extracted below - Order date 24.02.2020 5.2 The second contention of the assessee is that no disallowance u/r.8D(2)(ii) is warranted as the assessee is having own interest free funds in the shape of share capital, reserves & surplus and profits more than the investments made. Hence, there is no interest expenditure. The assessee by way of additional ground of appeal is seeking relief ....
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....se Rs. 44.81 Crores Rs. 91.33 Crores 5. He further clarified that the interest cost towards loan taken for acquisition of Idea Cellular Ltd. was with respect to disallowance under Rule 8D(2)(i), i.e., the amount of expenditure directly relating to income which does not form part of the total income. This precisely the Tribunal in the order passed in Miscellaneous Application had categorically specified after verifying the records. In so far as disallowance under Rule 8D(2)(ii) is concerned, already Tribunal has given a finding and given a direction to the ld. AO that if the assessee had surplus funds, then no disallowance should be made. The Assessing Officer was giving effect to its ITAT order has already decided t....
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.... when exempt income has been earned during the year. 8. In so far as disallowance of interest of Rs. 46.52 Crores which was offered under Rule 8D(2)(i), which is interest cost towards loan which was taken for acquisition of shares of Idea Cellular Limited, but assessee has not earned any exempt income qua these shares, then even if assessee might have offered for disallowance however, if assessee makes claim before the appellate authorities that no disallowance is called for in accordance with the provisions of law, then there cannot be a bar on the assessee to raise such claim. Hence we hold that assessee can raise such claim before the appellate authorities. 9. Now coming to the issue that whether interest cost of Rs. 46....