M/S. OVERSEAS CARPETS LTD.,NEW DELHI vs. ACIT, NEW DELHI
In the result, the appeal of the assessee is partly allowed
ITA 5062/DEL/2011[2008-09]Status: DisposedITAT Delhi22 Mar 2016AY 2008-09
Bench: Smt. Diva Singh & Sh. O.P. Kantassessment Year: 2008-09 M/S. Overseas Carpets Ltd, V/S Asstt. Commissioner Of 1-1/16, Shanti Mohan House, Income Tax, Circle-13 (1), Ansari Road, Daryaganj, New Delhi New Delhi (Pan: Aaaco0404H) (Appellant) (Respondent) Appellant By Ms. Charu Goyal, Ca Respondent By Sh. P. Dam Kanunjana, Sr. Dr Date Of Hearing 24/02/2016 Date Of Pronouncement 22/03/2016 Order Per O.P. Kant, A.M.: This Appeal Of The Assessee Is Directed Against Order Dated 13/07/2011 Of The Commissioner Of Income Tax (Appeals)-Xvi, New Delhi For Assessment Year 2008-09 Raising Following Grounds: 1. That The Cit Appeals Has Erred In Determining The Total Income At Rs. 1,63,91,923/-. 2. That The Ld. Cit Appeals Of Income Tax Has Erred In Making Disallowance Of Rs. 13,91,082/- Under Section 14A Of The Act, Which Is Bad In Law & Against Facts & Circumstances Of The Case. 3. The Appellant Craves Leave To Add, Alter, Amend, Amplify Or Delete Any Or All Of The Grounds Of Appeal Before Or At The Time Of Hearing.
Section 143(3)Section 14A
…d which is not exempt income, the interest paid cannot be held disallowable under the rule 8D(2)(ii) of the rules. The Hon’ble High Court of Allahabad in the case of Additional Commissioner of Income- tax versus Dhampur sugar Mills private limited reported in 370 ITR 194 has also given similar finding. The relevant part of the judgment is as under: “In the appeal, the Tribunal has confirmed the finding. The Tribunal has observed that the findings of the Commissioner (Appeals) were not controverted on behalf of the revenue. Once it was duly established that no borrowed funds on which interest was paid had been in…
