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Income Tax Appellate Tribunal, AHMEDABAD “D” BENCH
Before: Shri Rajpal Yadav & Shri Amarjit Singh
per section 14A r.w. rule 8D to the amount of Rs. 1,06,77,266/- and added to the total income of the assessee. 10. The assessee has preferred appeal before the ld. CIT(A). The ld. CIT(A) has restricted the addition to the amount of Rs. 2 lac on the ground that assessee has not shown sufficient interest free fund available with it as per the balance sheet ending on 31st March, 2012.The net reserves of the assessee company was of Rs. 139,21,54,435/- whereas the value of investment was only Rs. 40,24,00000/-. The ld. CIT(A) has also placed on the reliance on the decision of Hon’ble Gujarat High Court in the case of CIT vs Gujarat Industrial Corporation (2013) 318 taxman 142 (Guj) , CIT vs. Torrent Power Ltd. (2014) 222 taxman 367 (Guj) and the decision of CIT vs. Hittachi Home and Life Solutions (P) Ltd. (2014) 41 taxman 540 (Guj).
We have heard the rival contentions and perused the material on record .It is noticed that assessee has not earned any exempt income during the year under consideration and the Hon’ble Gujarat Hugh Court in the case of CIT vs. Corrtech Pvt. Ltd. (2014) 45 taxman.com 16 held that where assessee has not shown any exempt income there cannot be any expenses to be disallowed. In the light of the above facts and judicial findings, we do not find any merit in the ground of appeal, therefore, the same is dismissed.
In the result, appeal ITA 226/Ahd/2017 filed by revenue is dismissed.
In the combined result, appeal ITAs 226 & 227/Ahd/2017 filed by revenue are dismissed. Order pronounced in the open court on 15-01-2019
Sd/- Sd/- (RAJPAL YADAV) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad : Dated 15/01/2019
I.T.A No. 226 & 227/Ahd/2017 A.Y. 2012-13 to 2013-14 Page No 5 DCIT vs. M/s. Anupam Industries Ltd.
आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद