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2015 (12) TMI 1021 - ITAT BANGALOREDisallowance made u/s 14A r.w. Rule 8D(2)(ii) - CIT(A) had directed the AO to re-compute disallowance - Held that:- A look at the balance sheet of the assesee placed show that its share capital of ₹ 21,19,01,000/- and reserves and surplus of ₹ 17,81,28,688/- totaling to ₹ 39,00,29,688/-. Its investments as on 31-03-2011 were only ₹ 13,01,27,472/-. Obviously, assessee had more than enough own funds with it for justifying the investment. Further, it is not disputed that the assessee had made a suo-motu disallowance of ₹ 56,55,867/- as the interest expenditure attributable to the loan fund utilized for the investment. At no place the AO expressed any dissatisfaction with regard to the correctness of the claim of the assessee with regard to expenditure incurred for earning exempt income. Assessee had all along argued that the loans which were used were only for the purpose of its business. The loans which were used for the purpose of placing investments resulting in tax free income were also furnished by the assessee and this totalled only to ₹ 18,90,931/-. The CIT(A) directed the AO to confine the disallowance under Rule 8D(2)(ii) of the IT Act, 1961 to such amount which is justified - Decided against revenue
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