Deputy Commissioner Of Income tax Circle - 7(1)(1), Bengaluru vs M/S United Breweries Ltd., Srikakulam District

IN THE INCOME TAX APPELLATE TRIBUNAL
BANGALORE BENCHES “ B ” BENCH: BANGALORE

BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT
AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER
ITA No.1434/Bang/2018
(Assessment Year: 2010-11)

Dy. Commissioner of Income Tax,
Circle 7(1)(1), Bangalore. ….Appellant

Vs.

M/s. United Breweries Limited,
(Successor to M/s. United Millennium Breweries Ltd.)
Bantupalli Village, Ranasthalam Mandal,
Srikakulam District.
Andhra Pradesh. ……Respondent.
PAN AABCG 4480G

Assessee By:
Shri B.K. Panda,CIT (D.R)
Revenue By:
Shri K.R. Vasudevan, Advocate.

Date of Hearing : 16.12.2020.
Date of Pronouncement : 17.12.2020.

O R D E R

PER SHRI CHANDRA POOJARI, A.M. :

This appeal filed by the Revenue is directed against the order of Commissioner of Income Tax (Appeals)-2, Visakhapatnam Dt.14.02.2018 for the Assessment Year 2010-11.

2. The Revenue has raised the following grounds :

1. “ The order of the Learned CIT(A) is opposed to Low and facts of the case.

2. "Whether the CIT(A) is justified in holding that the disallowance made by the AO is not warranted, ignoring the fact that the interest bearing funds were utilised for making investment in Preference shares of subsidiary companies, the income from which does not form part of total income of the assessee and therefore is clearly diversion of funds?"

3. "Whether the CIT(A) is justified in low in ignoring the ratio of the decision of the Hon'ble Delhi High Court in the case of MAXOPP INVESTMENT LIMITED Vs CIT [15 Taxmann 390] wherein it is held that disallowance of interest u/s. 14A is justified even though the assessee has invested in the subsidiary company "for the sake of managerial control" which is akin to "investment for bailing out" the subsidiary company"?

4. "Whether the CIT(A) is justified in law in deleting the addition made on account of Bank Guarantee Commission paid to M/s. Millenium, Breweries Ltd., for obtaining loon from Axis Bank?'

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