COMMISSIONER OF INCOME TAX Vs. MS. SUSHMA KAPOOR

JUDGEMENT

(1.) WHILE issuing notice in respect of three items, addition made by the Assessing Officer which were deleted by the CIT(A) and formed by the appeal. After hearing Counsel for the parties we are of the opinion that all the issues are factual in nature where findings of facts are recorded in favour of the assessee herein and no question of law arises. It is demonstrated in the following manner:

(2.) THE Assessing Officer had disallowed expenses to the extent of Rs. 10,00,000/ - under Section 14A of the Income Tax Act. In appeal preferred by the assessee, the CIT (A) arrived at a finding that on the last date of accounting year the investment was only Rs. 80,000/ -. Another finding of fact which was recorded was that the investment was made in the preceding year and no part of investments were correlated with the borrowed funds. The CIT found that investment made in Zurich India Top 200 funds was advances from the loan and, therefore, only to this extent the interest could be disallowed under Section 14A of the Act. Following is the relevant discussion in this behalf as noted by the Tribunal as well: