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2013 (10) TMI 382 - ITAT MUMBAIDisallowance u/s 14A of the Income Tax Act - Set off of the interest paid against interest received – Loan provided to sister concern – Held that:- Assessee pleads of sufficient capital being available with it, so that the investments under reference stand financed there-from – A.O. following the same logic considered that even the advance/s to sister concern/s, on which it has received interest at Rs.202.70 lacs for the year, has also been financed from own capital, and there is no basis to claim that the borrowed funds from the bank/s have been lent to the sister concern/s, so as to set off the interest suffered against the interest received on loans to the said concern/s - Argument, i.e., of set off of the interest received against that paid, it would be noted, also contradicts the assessee's claim of the secured (bank) loans being toward financing the current assets of its business – The case is fit and proper that the matter is restored back to the file of the A.O. for a proper examination of the assessee's case, even as the onus to establish its claim/s would only be on the assessee, and decide the same in accordance with law, issuing definite findings of fact.
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