Pr. CIT v. India Gelatine & Chemicals Ltd.

376 ITR 553High Court2015#2195 most cited

What is Pr. CIT v. India Gelatine & Chemicals Ltd. authority for?

When an assessee has sufficient interest-free funds available to make investments that yield exempt income, no disallowance under Section 14A is justified, particularly concerning interest expenditure.

53

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2016 to 2025.

Also referred to as

Pr. CIT v. India Gelatine & Chemicals Ltd. · India Gelatine & Chemicals Ltd. 376 ITR 553 · Section 14A disallowance · expenditure for exempt income · interest-free funds for investment · sufficient own funds · no disallowance under Section 14A · Rule 8D application · Gujarat High Court 2015 · nexus borrowed funds exempt income

Sections most often in play

Section 14ASection 8D
Read the full judgment

Issues it is cited on

section 14bsection 10(33)section 40a(7)wholly and exclusively for businesssection 28(iv)section 43b(b)section 36(2)going concernsection 14a disallowancesection 14a(1)business expediencysection 36(1)(vii)

Judgments citing Pr. CIT v. India Gelatine & Chemicals Ltd.

The DCIT, Circle-1(1), Baroda vs. Gujarat Industries Power Co.Ltd., Baroda

ITA 1826/AHD/2010[2005-06]Status: DisposedITAT Ahmedabad26 May 2022AY 2005-06

Bench: Shri Mahavir Prasad, Judicial Memebr & Shri Waseem Ahmed, Accountant Memebr

For Appellant: 22-04-2022For Respondent: Shri Mohd. Usman, CIT DR &
Section 115J

…e and, therefore, there was no question of any estimation of expenditure in respect of interest and administrative expenses under rule 8D. Further the Hon’ble Court referred the another decision in the case of Pr. CIT v. India Gelatine & Chemicals Ltd. [2015] 376 ITR 553/[2016] 66 taxmann.com 356 wherein it is observed that when the assessee had sufficient interest-free funds out of which concerned investments had been made, disallowance under Section 14A is not justified. Thus we clear in our mind the direction given by the Ld CIT[A] to apply Rule 8D is not proper and there being the surplus funds were invested…

Gujarat Industries Power Co.Ltd., Baroda vs. The Dy.CIT., Circle-1(1), Baroda

ITA 1485/AHD/2010[2005-06]Status: DisposedITAT Ahmedabad26 May 2022AY 2005-06

Bench: Shri Mahavir Prasad, Judicial Memebr & Shri Waseem Ahmed, Accountant Memebr

For Appellant: 22-04-2022For Respondent: Shri Mohd. Usman, CIT DR &
Section 115J

…e and, therefore, there was no question of any estimation of expenditure in respect of interest and administrative expenses under rule 8D. Further the Hon’ble Court referred the another decision in the case of Pr. CIT v. India Gelatine & Chemicals Ltd. [2015] 376 ITR 553/[2016] 66 taxmann.com 356 wherein it is observed that when the assessee had sufficient interest-free funds out of which concerned investments had been made, disallowance under Section 14A is not justified. Thus we clear in our mind the direction given by the Ld CIT[A] to apply Rule 8D is not proper and there being the surplus funds were invested…

The Dy. CIT., Circle-1(1)(1), Vadodara vs. M/S. Gujarat Industries Power Co. Ltd., Vadodara

In the result, the captioned appeals are :

ITA 2463/AHD/2016[2012-13]Status: HeardITAT Ahmedabad13 Apr 2022AY 2012-13

Bench: Shri Mahavir Prasad, Judicial Memebr & Shri Waseem Ahmed, Accountant Memebr

For Respondent: Shri Mohd. Usman, CIT DR
Section 115JSection 147Section 14ASection 80I

…e and, therefore, there was no question of any estimation of expenditure in respect of interest and administrative expenses under rule 8D. Further the Hon’ble Court referred the another decision in the case of Pr. CIT v. India Gelatine & Chemicals Ltd. [2015] 376 ITR 553/[2016] 66 taxmann.com 356 wherein it is observed that when the assessee had sufficient interest-free funds out of which concerned investments had been made, disallowance under Section 14A is not justified. Thus we clear in our mind the direction given by the Ld CIT[A] to apply Rule 8D is not proper and there being the surplus funds were invested…

The DCIT, Circle-1(1), Vadodara vs. M/S. Gujarat Industries Power Co.Ltd., Vadodara

In the result, the captioned appeals are :

ITA 1257/AHD/2015[2011-12]Status: HeardITAT Ahmedabad13 Apr 2022AY 2011-12

Bench: Shri Mahavir Prasad, Judicial Memebr & Shri Waseem Ahmed, Accountant Memebr

For Respondent: Shri Mohd. Usman, CIT DR
Section 115JSection 147Section 14ASection 80I

…e and, therefore, there was no question of any estimation of expenditure in respect of interest and administrative expenses under rule 8D. Further the Hon’ble Court referred the another decision in the case of Pr. CIT v. India Gelatine & Chemicals Ltd. [2015] 376 ITR 553/[2016] 66 taxmann.com 356 wherein it is observed that when the assessee had sufficient interest-free funds out of which concerned investments had been made, disallowance under Section 14A is not justified. Thus we clear in our mind the direction given by the Ld CIT[A] to apply Rule 8D is not proper and there being the surplus funds were invested…

Gujarat Industries Power Co. Ltd., Baroda vs. The Dy.CIT., Circle-1(1), Baroda

In the result, the captioned appeals are :

ITA 535/AHD/2014[2010-11]Status: HeardITAT Ahmedabad13 Apr 2022AY 2010-11

Bench: Shri Mahavir Prasad, Judicial Memebr & Shri Waseem Ahmed, Accountant Memebr

For Respondent: Shri Mohd. Usman, CIT DR
Section 115JSection 147Section 14ASection 80I

…e and, therefore, there was no question of any estimation of expenditure in respect of interest and administrative expenses under rule 8D. Further the Hon’ble Court referred the another decision in the case of Pr. CIT v. India Gelatine & Chemicals Ltd. [2015] 376 ITR 553/[2016] 66 taxmann.com 356 wherein it is observed that when the assessee had sufficient interest-free funds out of which concerned investments had been made, disallowance under Section 14A is not justified. Thus we clear in our mind the direction given by the Ld CIT[A] to apply Rule 8D is not proper and there being the surplus funds were invested…

Continental Device India P.Ltd, New Delhi vs. DCIT, Circle-6(2), New Delhi

Accordingly, the appeal filed by the assessee is allowed

ITA 8314/DEL/2019[2016-17]Status: DisposedITAT Delhi09 Mar 2022AY 2016-17

Bench: Shri Amit Shukla & Dr. B.R.R. Kumar

For Appellant: Shri Pradeep Dinodia, AdvocateFor Respondent: Shri Rajesh Kumar Dhanesta, Senior DR
Section 143(3)Section 14A

…IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘B’ : NEW DELHI) BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER and DR. B.R.R. KUMAR, ACCOUNTANT MEMBER (THROUGH VIDEO CONFERENCE) ITA No.8314/Del./2019 (ASSESSMENT YEAR : 2016-17) M/s. Continental Device India P. Ltd., vs. DCIT, Circle 6 (2), C – 120, Naraina Industrial Area, Phase-I, New Delhi. New Delhi – 110 028. (PAN : AAACC1853E) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Pradeep Dinodia, Advocate REVENUE BY : Shri Rajesh Kumar Dhanesta, Senior DR Date of Hearing : 09.03.2022 Date of Order : 09.03.2022 O R D E R PER AMIT SHUKLA, JM : The aforesaid appea…

The DCIT, Circle-1(1), Baroda vs. Gujarat Industries Power Co.Ltd., Baroda

In the result, the captioned appeals are

ITA 3003/AHD/2010[2003-04]Status: DisposedITAT Ahmedabad28 Feb 2022AY 2003-04

Bench: Shri Mahavir Prasad, Judicial Memebr & Shri Waseem Ahmed, Accountant Memebr

For Appellant: Marfatia, Shri Nirmit Mehta &For Respondent: Shri Mohd. Usman, CIT DR
Section 14ASection 234BSection 234CSection 271(1)(c)Section 801ASection 80I

…erest and administrative expenses under rule 8D. Further the Hon’ble Court referred the another decision in the case of Pr. CIT v. India ITA No. 3003/Ahd/2010, 1534/Ahd/2009 & Ors. (Gujarat Industrial Power Co. Ltd. ) - 24 - Gelatine & Chemicals Ltd. [2015] 376 ITR 553/[2016] 66 taxmann.com 356 wherein it is observed that when the assessee had sufficient interest-free funds out of which concerned investments had been made, disallowance under Section 14A is not justified. Thus we clear in our mind the direction given by the Ld CIT[A] to apply Rule 8D is not proper and there being the surplus funds were invested…

The DCIT, Circle-1(1), Baroda vs. M/S. Gujarat Industrial Power Co.Ltd., Baroda

In the result, the captioned appeals are

ITA 1534/AHD/2009[2005-06]Status: DisposedITAT Ahmedabad28 Feb 2022AY 2005-06

Bench: Shri Mahavir Prasad, Judicial Memebr & Shri Waseem Ahmed, Accountant Memebr

For Appellant: Marfatia, Shri Nirmit Mehta &For Respondent: Shri Mohd. Usman, CIT DR
Section 14ASection 234BSection 234CSection 271(1)(c)Section 801ASection 80I

…erest and administrative expenses under rule 8D. Further the Hon’ble Court referred the another decision in the case of Pr. CIT v. India ITA No. 3003/Ahd/2010, 1534/Ahd/2009 & Ors. (Gujarat Industrial Power Co. Ltd. ) - 24 - Gelatine & Chemicals Ltd. [2015] 376 ITR 553/[2016] 66 taxmann.com 356 wherein it is observed that when the assessee had sufficient interest-free funds out of which concerned investments had been made, disallowance under Section 14A is not justified. Thus we clear in our mind the direction given by the Ld CIT[A] to apply Rule 8D is not proper and there being the surplus funds were invested…

ITO, Ward-2(3)(8), Surat vs. Prabha Prakashchandra Sancheti, Surat

In the result, the appeal of the Revenue is dismissed

ITA 149/SRT/2020[2012-13]Status: DisposedITAT Surat25 Feb 2022AY 2012-13

Bench: Shri Pawan Singh, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.149/Ahd/2020 (िनधा"रणवष" / Assessment Year: (2012-13) (Virtual Court Hearing) Income Tax Officer, Ward- Prabha Prakashchandra Sancheti Vs. 2(3)(8), Room No. 407, 4Th 206, Super Diamond Apartment, Floor, Anavil Business Nagoriwad, Saiyedpura, Surat- Centre, Adajan-Hajira Road, 395003 Adajan, Surat-395009 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Abwpj 2151L (Appellant ) (Respondent)

For Appellant: Shri Rohit Vijayvargia, C.AFor Respondent: Shri Sita Ram Meena– Sr.D.R
Section 10(11)Section 14Section 143(3)Section 14A

…ned the balance-sheet of the assessee and observed that no interest bearing funds were used for making impugned investments. Therefore, Ld. CIT(A) relied on the decision of Hon'ble jurisdictional High Court in the case of India Gelatine & Chemical Ltd. (2015) 376 ITR 353 (Guj) and deleted the addition. Aggrieved by the order of ld CIT(A), the Revenue is in appeal before us. 5.We have heard both the parties and carefully gone through the submission put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the fact of the case including the findings of the ld…

Torrent Power Ltd., Ahmedabad vs. The ACIT., Range-8, Ahmedabad

In the result cross objection filed by the assessee is partly allowed for statistical purposes

ITA 776/AHD/2012[2008-09]Status: DisposedITAT Ahmedabad08 Dec 2021AY 2008-09

Bench: Shri Rajpal Yadav & Shri Waseem Ahmed

For Appellant: Shri S.N. Soparkar, Sr. AdvocateFor Respondent: Shri Vinod Tanwani, CIT.D.R
Section 143(3)Section 254

…this case this presumption is established considering the finding of fact both by the CIT(A) and Tribunal”. 21.2 Similarly, we also rely on the judgment of the Hon’ble Gujarat High Court in the case of CIT vs. India Gelatine & Chemicals Pvt. Ltd. reported in 376 ITR 553. The relevant extract of the order is reproduced below: The assessee had made investment in shares and mutual funds. It suo motu offered/ disallowed the amount of Rs. 2 lakhs on account of section 14A. The Assessing Officer, however, made further disallowance under section 14A. The Tribunal deleted the entire disallowance made by the Assessing Of…

DCIT, Circle- 1(1), Gurgaon vs. Dlf Universal Ltd., Gurgaon

In the result, the appeal of the Revenue is dismissed

ITA 2180/DEL/2018[2014-15]Status: DisposedITAT Delhi29 Sept 2021AY 2014-15

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: Shri Satyajeet Goel, CAFor Respondent: Shri J.K. Mishra, CIT-DR
Section 143(3)Section 14ASection 14A(2)

…y the assessee would be out of interest free funds available with the assessee and, consequently, no disallowance could be made u/s 14A of the Act. Similar view has been taken in several cases including Principal CIT V/s India Gelatine & Chemicals Ltd. (2015) 376 ITR 353 (Guj). It, ergo, becomes manifest that the disallowance of interest as per clause (ii) cannot be made straight way without examining the important 5 I.T.A. No.2180/DEL/2018 aspect as has been discussed in the above decision, which the Ld. CIT(A) failed to take note of. As necessary information about the availability of shareholders’ fund vis-a-…

The DCIT, Gandhinagar Circle, Gandhinagar vs. M/S. Gujarat State Petronet Ltd., Gandhinagar

Accordingly. Thus, assessee’s claim is allowed for statistical purposes

ITA 382/AHD/2019[2013-14]Status: DisposedITAT Ahmedabad02 Aug 2021AY 2013-14

Bench: Shri Waseem Ahmed & Ms. Madhumita Roy

For Appellant: Respondent byFor Respondent: Shri S. N. Soparkar Sr. Adv. & Shri Parin Shah
Section 143(3)Section 14A

…ing the addition of the aforesaid made by the Assessing Officer, the learned Tribunal has heavily relied upon the decision of the Division Bench of this Court in the case of Principal Commissioner of Income Tax Vs. India Gelatine and Chemicals Limited, [2015] 376 ITR 553 (Guj.)], and applying the said decision to the facts of the case on hand, and considering the fact that while making the addition of Rs, 1,22,12,831/ made by the Assessing Officer under Section 14A of the Income Tax Act read with Rule 8D of the Income Tax Rules, 1962, the Assessing Officer did not record as to how the expenditure as claimed by th…

The DCIT, Gandhinagar Circle, Gandhinagar vs. M/S. Gujarat State Petronet Ltd., Gandhinagar

Accordingly. Thus, assessee’s claim is allowed for statistical purposes

ITA 381/AHD/2019[2012-13]Status: DisposedITAT Ahmedabad02 Aug 2021AY 2012-13

Bench: Shri Waseem Ahmed & Ms. Madhumita Roy

For Appellant: Respondent byFor Respondent: Shri S. N. Soparkar Sr. Adv. & Shri Parin Shah
Section 143(3)Section 14A

…ing the addition of the aforesaid made by the Assessing Officer, the learned Tribunal has heavily relied upon the decision of the Division Bench of this Court in the case of Principal Commissioner of Income Tax Vs. India Gelatine and Chemicals Limited, [2015] 376 ITR 553 (Guj.)], and applying the said decision to the facts of the case on hand, and considering the fact that while making the addition of Rs, 1,22,12,831/ made by the Assessing Officer under Section 14A of the Income Tax Act read with Rule 8D of the Income Tax Rules, 1962, the Assessing Officer did not record as to how the expenditure as claimed by th…

The DCIT, Circle-8, Ahmedabad vs. Sintex Industries Ltd., Ahmedabad

In the result, appeal ITAs 2786/Ahd/2014, 1416/Ahd/2018, and 1417/Ahd/2018 filed by revenue are dismissed and appeal ITA No

ITA 2786/AHD/2014[2011-12]Status: DisposedITAT Ahmedabad08 Apr 2021AY 2011-12
For Appellant: Shri Bhavin Marfatia, A.RFor Respondent: Shri Vinod Tanwani, CIT-D.R
Section 143(2)Section 143(3)Section 80I

…e Court in the case of ACIT v. Elecon Engineering Company Limited, reported in 189 Taxmann 83 [2010] 10.1 At this stage, decision of Division Bench of this Court in the case of Principal Commissioner of Income-tax v. India Gelatine & Chemicals Limited, [2015] 376 ITR 553 [Guj] needs a reference where the Division Bench has held and observed that when the assessee had sufficient interest free funds out of which concerned investments had been made, disallowance under Section 14A of the Act is not justified. I.T.A Nos. 2786, 2702/Ahd/2014 & 1416, 1417/Ahd/2018 Page No 13 11. Considering the aforesaid facts and cir…

M/S. Srf Limited, Gurgaon vs. DCIT, New Delhi

In the result appeal of the appellant assessee is partly allowed for statistical purposes

ITA 2064/DEL/2014[2007-08]Status: DisposedITAT Delhi06 Apr 2021AY 2007-08

Bench: Shri Amit Shukla & Shri O.P. Kantassessment Year: 2007-08

For Appellant: S/Shri Pradeep Dinodia &For Respondent: Shri Surender Pal, CIT DR
Section 143(3)Section 14ASection 14A(1)Section 37Section 9C

…co Energy Systems Ltd. [TS-313-ITAT- 2013(Mum)].  CIT v. UTI Bank Ltd. [2013] 32 taxmann.com 370/215 Taxman 8 (Mag.)(Guj. HC).  DIT (IT) v. BNP Paribas SA [2013] 32 taxmann.com 276/214 Taxman 548 (Bom. HC).  Pr. CIT v. India Gelatine& Chemicals Ltd. [2015] 376 ITR 553/[2016] 66 taxmann.com 356. 12. The ld. Counsel in his synopsis also contended that no disallowance u/s 14A invoking the Rule 8D can be made for A.Y. 2007-08 under consideration. Additionally, he contended that disallowance cannot be sustained in absence of any satisfaction recoded by the assessing officer in its order. 13. The learned DR on the…

Bhavin Upadhyay, Vadodara vs. DCIT, Circle-3(1), Vadodara

In the result, the appeal of the assessee is partly allowed

ITA 1459/AHD/2018[2014-15]Status: DisposedITAT Ahmedabad01 Jan 2021AY 2014-15

Bench: Shri Rajpal Yadav & Shri Waseem Ahmedआयकर अपील सं./Ita No. 1459/Ahd/2018 "नधा"रण वष"/Asstt. Year: 2014-2015 Bhavin Upadhyay, D.C.I.T., Neuro Care Clinic, Vs. Circle-3(1), Kharivav Road, Vadodara. Dandia Bazar, Vadodara-390001. Pan: Aaepu2434L

For Appellant: Shri T.P. Hemani, Sr. Advocate &For Respondent: Shri Rajdeep Singh, Sr.D.R
Section 14A

…आयकर अपील"य अ"धकरण, अहमदाबाद "यायपीठ IN THE INCOME TAX APPELLATE TRIBUNAL, ‘’ D’’ BENCH, AHMEDABAD (CONDUCTED THROUGH VIRTUAL COURT AT AHMEDABAD) BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT And SHRI WASEEM AHMED, ACCOUNTANT MEMBER आयकर अपील सं./ITA No. 1459/AHD/2018 "नधा"रण वष"/Asstt. Year: 2014-2015 Bhavin Upadhyay, D.C.I.T., Neuro Care Clinic, Vs. Circle-3(1), Kharivav Road, Vadodara. Dandia Bazar, Vadodara-390001. PAN: AAEPU2434L (Applicant) (Respondent) Assessee by : Shri T.P. Hemani, Sr. Advocate & Shri Parimal Sinh Parmar, A.R Revenue by : Shri Rajdeep Singh, Sr.D.R सुनवाई क" तार"ख/Date of Hearing : 11/12/20…

Mahanadi Coalfields Ltd., Sambalpur vs. DCIT, Circle-2(1), Sambalpur

In the result, appeal of the assessee is partly allowed for

ITA 174/CTK/2018[2015-16]Status: DisposedITAT Cuttack05 Jun 2020AY 2015-16

Bench: Shri C.M. Garg, Jm & Shri L.P. Sahu, Am आयकर अपीऱ सं./Ita No.174/Ctk/2018 (नििाारण वषा / Assessment Year : 2015 - 2016) Mahanadi Coalfields Ltd., Vs. Dcit, Circle-2(1), Sambalpur Jagriti Vihar, Burla, Sambalpur स्थायी ऱेखा सं./Pan No. : Aabcm 5188 P (अऩीऱाथी /Appellant) (प्रत्यथी / Respondent) .. यनधागररती की ओर से /Assessee By : Shri S.S.Podar, Ca राजस्व की ओर से /Revenue By : Shri S.M.Keshkamat, Citdr सुनवाई की तारीख / Date Of Hearing : 15/01/2020 घोषणा की तारीख/Date Of Pronouncement : 05/06/2020 आदेश / O R D E R Per L.P.Sahu, Am :

For Appellant: Shri S.S.Podar, CAFor Respondent: Shri S.M.Keshkamat, CITDR
Section 143(3)Section 14ASection 32Section 35ESection 37Section 37(1)

…आयकर अपीऱीय अधिकरण, कटक न्यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK श्री सी.एम.गगग, न्याययक सदस्य एवं श्री एऱ.ऩी.साहु,ऱेखा सदस्य के समऺ BEFORE SHRI C.M. GARG, JM & SHRI L.P. SAHU, AM आयकर अपीऱ सं./ITA No.174/CTK/2018 (नििाारण वषा / Assessment Year : 2015 - 2016) Mahanadi Coalfields Ltd., Vs. DCIT, Circle-2(1), Sambalpur Jagriti Vihar, Burla, Sambalpur स्थायी ऱेखा सं./PAN No. : AABCM 5188 P (अऩीऱाथी /Appellant) (प्रत्यथी / Respondent) .. यनधागररती की ओर से /Assessee by : Shri S.S.Podar, CA राजस्व की ओर से /Revenue by : Shri S.M.Keshkamat, CITDR सुनवाई की तारीख / Date of Hearing : 15/0…

M/S Punjab State Industrial Development Corporatin Ltd., Chandigarh vs. ACIT, C-2(1), Chandigarh

In the result, appeal of the assessee is allowed for statistical purposes

ITA 1293/CHANDI/2018[2014-15]Status: DisposedITAT Chandigarh28 Apr 2020AY 2014-15
For Appellant: Shri Atul Goyal, CAFor Respondent: Dr. Gulshan Raj, CIT (DR)
Section 10(34)Section 14ASection 250(6)Section 43BSection 56

…y the assessee would be out of interest free funds available with the assessee and, consequently, no disallowance could be made u/s 14A of the Act. Similar view has been taken in several cases including Principal CIT VS. India Gelatine & Chemicals Ltd. (2015) 376 ITR 353 (Guj). It, ergo, becomes manifest that the disallowance of interest as per clause (ii) cannot be made straight way without examining the important aspect as has been discussed in the above decisions, which the Id. CIT(A) failed to take note of. As necessary information about the availability of shareholders' fund vis-a-vis the amount invested in…

Kishore Muralidhar Agarwal, Hyderabad, Secunderabad vs. ITO, Ward-10(3), Hyderabad

In the result, both the appeals of the assessee are dismissed

ITA 90/HYD/2017[2012-13]Status: DisposedITAT Hyderabad09 Jul 2019AY 2012-13

Bench: Smt. P. Madhavi Devi & Shri S. Rifaur Rahman

For Appellant: Shri Sunil Kumar JainFor Respondent: Date of hearing
Section 143(2)Section 14A

…yes ." The same decision was also held in the case of Neeraj Consultants Ltd., Kolkata vs Department Of Income Tax on 19 October, 2016 [ITA No.316/Kol/2014]. 4. Also, It was stated by the High Court in Principal CIT v. India Gelatine and Chemicals Ltd. [2015] 376 ITR 553 (Guj) that investment giving tax-free income had no nexus with borrowed fund, because the assessee had sufficient proprietary funds for investment, there could be no resort to section 14A so as to disallow any part of the interest on borrowed funds. Following the above case law, even if the assessing officer calculates the expenditure which does…

Kishore Muralidhar Agarwal, Sec'Bad, Secunderabad vs. ITO, Ward-10(4), Hyderabad

In the result, both the appeals of the assessee are dismissed

ITA 753/HYD/2016[2009-10]Status: DisposedITAT Hyderabad09 Jul 2019AY 2009-10

Bench: Smt. P. Madhavi Devi & Shri S. Rifaur Rahman

For Appellant: Shri Sunil Kumar JainFor Respondent: Date of hearing
Section 143(2)Section 14A

…yes ." The same decision was also held in the case of Neeraj Consultants Ltd., Kolkata vs Department Of Income Tax on 19 October, 2016 [ITA No.316/Kol/2014]. 4. Also, It was stated by the High Court in Principal CIT v. India Gelatine and Chemicals Ltd. [2015] 376 ITR 553 (Guj) that investment giving tax-free income had no nexus with borrowed fund, because the assessee had sufficient proprietary funds for investment, there could be no resort to section 14A so as to disallow any part of the interest on borrowed funds. Following the above case law, even if the assessing officer calculates the expenditure which does…