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2016 (9) TMI 1211 - ITAT MUMBAIAddition u/s 14A - Held that:- We noted from the above facts that the assessee before the CIT (A) has demonstrated from the balance sheet that it was having interest funds available with it for investment in shares. The AO or the CIT (A) has nowhere proved the nexus of tax free income generated out of investments made from interest bearing funds, despite the fact that the entire facts were available before them. The assessee has reasonably demonstrated before us that the interest free funds i.e. assessee’s own share capital as well as reserves and surplus is more than ₹ 20 Crores as against the investments in shares that gave tax free income at ₹ 1.03 Crores which is much more lower than the interest free funds available. Hence, this being the position, we are of the view that the assessee’s case is squarely covered by the decision of the Hon’ble Bombay High Court in the case of HDFC Bank Ltd. [2014 (8) TMI 119 - BOMBAY HIGH COURT ] wherein held if there were funds available both interest-free and over draft and/or loans taken, then a presumption would arise that investments would be out of the interest-free funds generated or available with the company if the interest-free funds were sufficient to meet the investment. - Decided in favour of assessee Disallowance of depreciation on motor car - car is registered in the name of one of the directors and legal ownership is not in the name of the Assessee Company - Held that:- We find from the facts of the case that the assessee has purchased the motor car from its own funds but registered the same in the name of one of the directors. There is no dispute about this fact. In such a circumstance, the issue is covered by the decision of the Hon’ble Bombay High Court in the case of CIT Vs Dilip Singh Sardarsingh Bagga (1992 (9) TMI 74 - BOMBAY High Court ) wherein it has been categorically held that “registration under Motor Vehicle Act is not essential requirement for acquiring ownership of the motor vehicle and purchasing of motor vehicle for valuable consideration from assessee’s account and using the same for the business purpose, depreciation cannot be denied on the ground that the vehicle was not registered in assessee’s name”. Following the above decision of the Hon’ble Bombay High Court in the case of Dilip Singh Sardarsingh Bagga (supra) we allow the claim of the assessee.
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