Rajmal Lakhichand Jewellers Pvt. ... vs Assessee on 29 February, 2016
In the case of CCI Ltd. (Supra)
the assessee earned the dividend income on the assets which was
claimed exempt but the profit on the sale was offered as business
income. In this case, there cannot be profit on the transfer of the
mutual funds but as we have held that there is no specific finding by
the AO nor by the CIT(A) that infact the assessee has used the
interest bearing funds for investment, on this factual aspect, we
hold that there is no justification to make the disallowance. We
accordingly delete the addition made by the AO u/s.14A r.w. Rule
8D as the mandate of section 14A(1) is not fulfilled."