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2014 (1) TMI 1401 - ITAT MUMBAIDisallownace u/s 14A - Held that:- The assessee has interest free funds in the form of capital, reserve & surplus and interest free unsecured loans from the promoters - The aggregate of such interest free funds comes to Rs. 5.14 crores - Neither the Assessing Officer nor the learned Commissioner (Appeals) has examined this fact and has applied provisions of rule 8D even on the interest component – Decision in Reliance Utilities and Power Ltd [2009 (1) TMI 4 - HIGH COURT BOMBAY] followed - If there are interest free funds available to the assessee which is sufficient to meet its investment and at the same time the assessee has also interest bearing funds in the form of loan, then it can be presumed that the investment had been made from interest free funds available – The issue has been restored for fresh adjudication.
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