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2012 (11) TMI 272 - AT - Income TaxDisallowance u/s 14A alleged that assessee made investment in mutual funds, yielding dividend income exempt u/s 10 of the Act - Assessing Officer has made the disallowance u/s 14A holding it is expenditure on financial charges directly related to the earning of exempt income from dividends Held that:- There is nothing to suggest that any fresh investment was made in mutual funds or shares, yielding exempt income; rather investment in mutual funds came down to Rs.7,66,56,044/- as against Rs.12,00,45,300/- in the preceding year - Since no fresh investment has been made in the year under consideration, the ld. CIT(A), following the basis adopted in the preceding year - Revenue have not placed any evidence, controverting these findings of facts recorded by the ld. CIT(A) nor brought to our notice any material suggesting that borrowed funds were indeed utilized in making investment in the year under consideration, yielding tax free income Ad hoc disallowance - repair and maintenance expenses on plant, machinery and building and disallowance of 5% of miscellaneous and travel expenses alleged that assessee did not produce a majority of the vouchers assessee submitted that these were to be called from various units located in different places Held that:- Matter remitted to the file of the AO with the directions to allow another opportunity to the assessee to produce all the bills and vouchers in relation to the aforesaid expenses on account of repairs to building and plant & machinery as also of miscellaneous and travel expenses and thereafter, pass appropriate orders in accordance with law - appeal is partly allowed for statistical purposes.
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