The Tax Publishers2020 TaxPub(DT) 3724 (Mad-HC) : (2021) 431 ITR 0352

INCOME TAX ACT, 1961

Section 14A

Where Tribunal having chosen to remand the matter to AO for a fresh consideration, could have avoided qualifying the remand, especially when the questions of law were being raised by both Revenue as well as the assessee and there was a slight difference in the instant appeal as Tribunal had not qualified the order of remand as in the order impugned in T.C.A. No. 289/2018, therefore, matter was remanded back to AO to consider all issues that may be raised before him both by assessee as well as Revenue.

Disallowance under section 14A - Exclusion of interest on term-loan and cash credit accounts for calculation - Remand of matter -

Issue arose for consideration as to whether Tribunal was right in directing AO to exclude the interest on term loan and cash credit accounts for calculation of disallowance under section 14A read with rule 8D though assessee had made investment out of mixed bag of funds and there was no express provision in section 14A and rule 8D for such exclusion. Held: Tribunal, having chosen to remand the matter to AO for a fresh consideration, could have avoided qualifying the remand especially when the questions of law were being raised by both the Revenue as well as the assessee. It was pointed out by assessee that there was a slight difference in the instant appeal as the Tribunal had not qualified the order of remand as in the order impugned in T.C.A. No. 289/2018. Tax Case Appeal was allowed and finding/observation made by Tribunal were set aside and matter was remanded back to AO to consider all issues that may be raised before him both by the assessee as well as the Revenue.

Relied:Maxopp Investment Ltd. v. CIT, New Delhi and Pr. CIT-I v. D.B. Corp Ltd. (2018) 91 Taxmann.com 154 (SC) : 2018 TaxPub(DT) 1403 (SC) CIT, Corporate Circle -- III (1), Chennai v. M/s. Tidel Park Limited [TCA. Nos. 732 and 733 of 2018, dt. 7-7-2020] : 2020 TaxPub(DT) 2875 (Mad-HC) CIT, Corporate Circle -- 3, Chennai. v. M/s. Tamilnadu Industrial Development Corporation Limited [TCA. Nos. 509 and 510 of 2018, dt. 7-7-2020] : 2020 TaxPub(DT) 2871 (Mad-HC) M/s. Roca Bathroom Products (P) Ltd. v. Pr. CIT 1 (2019) 101 Taxmann.com 395 (Mad-HC) : 2019 TaxPub(DT) 0509 (Mad-HC) Pr. CIT-6 v. Moderate Leasing and Capital Services (P) Ltd. 2018 TaxPub(DT) 7189 (Del-HC) Acb India Limited (Formerly M/s. Aryan Coal Benefications (P) LTD. v. Asstt. CIT (2015) 374 ITR 108 (Del-HC) : 2015 TaxPub(DT) 1966 (Del-HC) Joint Investments (P) Ltd. v. CIT (2015) 372 ITR 694 (Del-HC) : 2015 TaxPub(DT) 1375 (Del-HC) The CIT v. Reliance Utilities & Power Ltd. (2009) 313 ITR 340 (Bom-HC) : 2009 TaxPub(DT) 1275 (Bom-HC) M/s. Beach Minerals Company (P) Ltd. v. The Asstt. CIT, Company Circle I (2), Chennai [ITA. No. 2110/Mds/2014, dated 6-8-2015] : 2015 TaxPub(DT) 3900 (Chen-Trib) Pr. CIT-6 v. M/s. Moderate Leasing and Capital Services (P) Ltd. 2018 TaxPub(DT) 7185 (SC) Followed:Thiru Arooran Sugars Ltd. v. Asst. CIT, Company Circle-III (2), Chennai [ITA Nos. 458 & 459/Mds/2015, ITA No.462/Mds/2015, dt. 14-7-2017] The CIT, Corporate Circle-3, Chennai v. M/s. Thiru Arooran Sugar Ltd., 2020 TaxPub(DT) 3528 (Mad-HC)

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2008-09 & 2010-11

IN THE MADRAS HIGH COURT

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