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2016 (6) TMI 21 - ITAT AMRITSARAddition u/s 14A - Held that:- in respect of disallowance u/s 14A, the assessee submitted complete details of the capital and reserves of assessee and also submitted the profits earned during the year. The learned CIT(A) has made a finding of fact that assessee had made an investment of ₹ 2.75 crores in the F.Y. 2008-09 as against free funds of ₹ 12.38 crores. The learned CIT(A) has also made a finding of fact that assessee had earned net profit of ₹ 17.33 crores during the year which is far in excess of the investment made in the capital of subsidiary company. The learned CIT(A) further held that in earlier years on similar facts and circumstances the addition u/s 14A was not made and keeping in view the rule of consistency the addition was not sustainable in the present years. While recording detailed findings the learned CIT(A) has also relied upon a number of case laws. The learned DR was not able to controvert any of the findings of learned CIT(A), and, therefore, we do not find any infirmity in the order of learned CIT(A) - Decided against revenue Disallowance u/s 36(1)(iii) - Held that:- Coming to other grievance of Revenue, we find that learned CIT(A) has made a findings of fact that that assessee was having free reserves far more than advances to two firms. The learned CIT(A) has also categorically held that the assessee had given advances to two firms under normal business operations and, therefore, he had rightly held that disallowance u/s 36(1)(iii) was not warranted. The learned DR was not able to controvert any of the findings of learned CIT(A), and, therefore, we do not find any infirmity in the order of learned CIT(A)- Decided against revenue
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