2018 (7) TMI 2383

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....Appellant : Shri Suresh Muthukrishna, CA. For the Respondent : Dr. P.V. Pradeep Kumar, Addl.CIT(DR) ORDER PER INTURI RAMA RAO, AM : These are cross appeals filed by the revenue as well as the assessee-company directed against the order of the learned Commissioner of Income-tax (Appeals)-5, Bengaluru, dated 26/07/2017 for the assessment year 2014-15. 2. Briefly, facts of the case are....

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....s stated that no borrowed funds were utilized for the purpose of making investment in the assets yielding exempt income. AO, however, rejected the above contention and invoking the provisions of section 14A r.w.s. rule 8D, made addition of Rs.1,12,27,401/-. 3. Being aggrieved, an appeal was preferred before the ld.CIT(A) who, vide impugned order, had upheld the applicability of section 14A of t....

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....uctions Ltd. (92 taxman.com 104(Hyd. Trib)(SB). Thus the proposition that the amount of disallowance cannot exceed exempt income is settled. Accordingly, we hold that the disallowance cannot exceed the amount of exempt income. Therefore, we do not find any fallacy in the reasoning of the ld.CIT(A). Accordingly, we dismiss the grounds of appeal filed by the revenue. 6. As regards the appeal file....

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....fore the lower authorities, none of lower authorities dealt with same. Therefore, we deem it proper to remit the matter to the file of the AO for the limited purpose of verification and adjudication of the following lines: (i) Whether long-term capital gains had arisen in respect of investments yielding taxable income? If so, no disallowance is required to be made u/s 14A as ther....