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Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI
Before: SHRI GEORGE MATHAN & SHRI S. JAYARAMAN
आदेश / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER:
the Order of Commissioner of Income Tax (Appeals)-1, Chennai, in dated 05.07.2016 for the AY 2012-13.
Shri Sasi Kumar, JCIT, represented on behalf of the Appellant and Shri A.S.Sriraman, Adv., represented on behalf of the Respondent.
ITA No.2791/Mds/2016 :- 2 -:
It was submitted by the Ld.DR that the only issue in the Revenue’s appeal was against the action of the Ld.CIT(A) in directing the AO to re- work the disallowance u/s.14A r/w Rule 8D after excluding the interest attributable to strategic investments. It was further agreed by both the sides that the issue in the Revenue’s appeal was squarely covered by the decision of the Co-ordinate Bench of this Tribunal in the assessee’s own case for the AYs 2010-11 & 2011-12 in and in ITA No.1647/Mds/2015 dated 07.06.2016 and in ITA No.637/Mds/2016 wherein the Co-ordinate Bench of this Tribunal has restored the issue to the file of the AO with the following directions:
The assessee has invested in group companies not to earn exempted income. Considering apparent facts, the investments pattern, judicial decisions and findings of the ld. Commissioner of Income Tax (Appeals) and nature of expenditure claimed as per Audited Financial Statements, we are of the opinion that the matter has to re-examined and direct the Assessing Officer to verify the investments in group subsidiaries on commercial expediency and expenditure attributable to investments and apply the provisions of Sec.14A r.w. Rule 8D, we remit the issue to the file of Assessing Officer for fresh consideration. This ground of the assessee is allowed for statistical purpose.
We have considered the rival submissions. As it is noticed that the Co-ordinate Bench of this Tribunal has restored the issue to the file of the AO for re-adjudication, on identical reasons, the issue in this appeal are restored to the file of the AO for re-adjudication.
ITA No.2791/Mds/2016 :- 3 -:
In the result, the appeal filed by the Revenue is partly allowed for statistical purposes
Order pronounced in the Open Court on June 13, 2017, at Chennai.