Pr. Commissioner of Income-tax-3, Ahmedabad v. Nova Properties Pvt. Ltd
[Citation -2017-LL-0613-7]
| Citation | 2017-LL-0613-7 |
|---|---|
| Appellant Name | Pr. Commissioner of Income-tax-3, Ahmedabad |
| Respondent Name | Nova Properties Pvt. Ltd. |
| Court | HIGH COURT OF GUJARAT AT AHMEDABAD |
| Relevant Act | Income-tax |
| Date of Order | 13/06/2017 |
| Judgment | View Judgment |
| Keyword Tags | interest expenditure • question of law • tax free income • expenditure incurred in relation to income not includible in total income • exempted income • interest free fund |
| Bot Summary: | These appeals arise out of a common judgement of the Income Tax Appellate Tribunal dated 14.07.2016. We may notice that in Tax Appeal No. 334 of 2017, the Revenue has raised following questions: A. Whether the Hon'ble ITAT is right in law and on facts in deleting the disallowance of Rs. 30,78,541/- for A.Y. 2008-09 made by the A.O. u/s. In short, the question is, did the Tribunal commit an error in deleting the disallowance made by the Assessing Officer and confirmed by the CIT under section 14A of the Income Tax Act, 1961 'the Act' for short The Tribunal, in the impugned judgement, recorded that the assessee had earned tax free income of Rs. 58.41 lacs. The assessee had also incurred interest expenditure. It was, on this basis, that the Bombay High Court while relying on the judgement in case of Commissioner of Income Tax vs. Reliance Utilities and Power Ltd. reported in 313 ITR 340 allowed the assessee's appeal. Neither of these orders dislodge the Tribunal's finding of fact that at the command of the assessee interest free funds in excess of investment in tax exempt income were available. We may notice that in one of the Tax Appeals, a consequential question of effect of this conclusion in computing minimum alternative tax arises. |