Search Results Page

Search Results

1 - 3 of 3 (0.52 seconds)
Vijay Industries, Alwar vs Deputy Commissioner Of Income Tax, ... on 8 March, 2018 cites

Cheminvest Limited vs Commissioner Of Income Tax-Vi on 2 September, 2015

952/JP/2010 in assessee's own case, the issue has been set aside in following terms " the A.O. should establish the nexus between the borrowed fund and investment in shares and will accordingly disallowed the interest." At the time of set aside proceedings before the ld Assessing Officer, the assessee has submitted fund flow statement as on 31.2.2005 and 31.3.2006. The assessee has borrowed fund at Rs. 6.58 crores, which has been utilized in stock in trade, debtors, cash and bank and loan advances to the tune of Rs. 7.83 crores as on 31.3.2006. The ld. Assessing Officer has not established any nexus between the interest bearing borrowed fund and investment made on the basis of fund position submitted by the assessee during the assessment proceedings. He asked the assessee to file the details on the basis of day to day basis of investment made in shares and on particular date, cash available with the assessee. It is undisputed fact that this investment in shares at Rs. 18,77,160/- has been made in A.y. 1992-93 to 2001-02. These facts have not been controverted by the lower authorities as well as DR during the course of hearing. During the year the assessee does not have dividend income and no investment has been made during the year in shares but all the investments are carry forwarded from A.Y. 1992-93.The ld. CIT (A) relied on the decision of ITAT Delhi (Special Bench) in the case of Cheminvest Ltd. vs. ITO (supra) wherein it has been held by the Coordinate Bench of Delhi ITAT that in position of no dividend income, disallowance can be made by the Assessing Officer U/s 14A, which has been overruled by the Hon'ble Delhi High Court vide order dated 2.9.2015 and held that there should be actual receipt of income for disallowance u/s 14A of the Act. The other arguments of the assessee also support that the assessee has exempt fund particularly reserve and surplus to make investment in the shares.
Delhi High Court Cites 19 - Cited by 1072 - S Muralidhar - Full Document
1