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2018 (12) TMI 1870 - ITAT MUMBAIDisallowance u/s 14A r.w.r. 8D - expenses incurred to earn the exempt income - Sufficiency of own funds - HELD THAT:- The assessee was having its own fund sufficient to invest the money to the tune of ₹ 4.81 crores which yielded tax free income. When a person who was having its own fund more than the investment then it would be presumed that the investment was made out of his own fund. In the case of HDFC Bank Ltd [2016 (3) TMI 755 - BOMBAY HIGH COURT]. It is specifically held that the no disallowance is permissible u/s 14A of the I.T. Act, 1961 if, the investment in tax free securities has been made from interest free funds. In the group concern case titled as CIT Vs. Palm Grove Beach Hotels Pvt. Ltd. [2016 (7) TMI 959 - BOMBAY HIGH COURT]as held that the no disallowance u/s 14A r.w. Rule 8D of the Act is required if, the assessee uses it is own fund for the investment to earn the exempt income No disallowance u/s 14A r.w. Rule 8D of the Act is required in the present case, therefore, we are of the view that the finding of the CIT(A) is wrong against law and facts, therefore, we set aside the finding of the CIT(A) on this issue and delete the addition raised on account of u/s 14A r.w. Rule 8D of the Act. Accordingly, this issue is decided in favour of the assessee against the revenue. Addition under the head of income from house property - deemed income from unsold unit/ flat which was closing stock of the appellant as per provisions of Sections 22 and 23 - HELD THAT:- In view of the law relied upon the law representative of the assessee i.e. M/s. Runwal Constructions Vs. ACIT and M/s. C.R. Developments P. Ltd. Vs. JCIT [2015 (5) TMI 1161 - ITAT MUMBAI], we are of the view that the finding of the CIT(A) on this issue is wrong against law and facts whereas the case of the assessee has duly been covered by the law mentioned above, therefore, by honoring the orders mentioned above. We deleted the addition raised by assessee on account of notional income of vacant flats. Accordingly, this issue is decided in favour of the assessee against the revenue. Addition to net profit as on profit and loss account while computing book profit u/s 115JB being disallowed u/s 14A r.w. Rule 8D - HELD THAT:- As relying on L & T FINANCE LIMITED VERSUS DEPUTY COMMISSIONER OF INCOME TAX-CIRCLE 2 (2) , MUMBAI [2018 (3) TMI 210 - ITAT MUMBAI] we are of the view that the no adjustment u/s 14A r.w. Rule 8D of the Act is required while assessing book profit in view of the provision u/s 115JB of the Act except to the extent of explanation u/s 115JB of the Act. Accordingly, we allowed the claim of the assessee and decided the issue in favour of the assessee against the revenue.
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