2016 (11) TMI 1012 - PUNJAB AND HARYANA HIGH COURT

Disallowance u/s 14A - Held that:- The funds/reserves of the appellant were sufficient to cover the interest free advances made by it to its sister company. We are entirely in agreement with the judgment of the Bombay High Court in Commissioner of Income Tax v. Reliance Utilities & Power Ltd., (2009 (1) TMI 4 - BOMBAY HIGH COURT) para-10, that if there are interest free funds available a presumption would arise that investment 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

Allowance of legal and professional expenses - ITAT allowed the claim - Held that:- It is not possible to say that the conclusion arrived at by the Tribunal is absurd or perverse. It is a possible view. The services such as of the nature mentioned in the agreement between the assessee and M/s Max UK Ltd. would not necessarily be recorded in writing. Advice, introductions, information may well be communicated orally. The possibility of this is enhanced on account of the fact that these are group companies. Even if each of the facts by itself does not support the Tribunal’s conclusion taken together they certainly do. The Tribunal has, therefore, taken a possible view.- Decided in favour of assessee