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2016 (12) TMI 111 - ITAT MUMBAIDisallowance u/s 14A - Held that:- We find from the balance sheet on 31.3.2010 that the assessee’s own interest free funds were ₹ 3,44,28,517/- against the investment in shares and securities of ₹ 1,77,34,233/-. We are of the considered opinion that the case of the assessee is squarely covered by the ratio laid down in the case of HDFC BANK LTD (2014 (8) TMI 119 - BOMBAY HIGH COURT) in which the Hon’ble High Court has held that in case interest free funds are more than the investments made in the shares and securities which yielded exempt income then the presumption would be that investments were made in the shares and securities out of interest free funds. In view of the facts and circumstances of the case, we are of the considered opinion that the case of the assessee is squarely coved by the decision of the Hon’ble jurisdictional High Court and accordingly, we set aside the order of the ld. CIT(A) and direct the AO to delete the addition as made under rule 8D(2(ii) of the Rules.
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