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2017 (5) TMI 1304 - ITAT MUMBAIDisallowance made u/s.14A - scope of amendment - Held that:- The legislature brought certain amendments and provided that no deduction shall be allowed in respect of the expenditure incurred by the assessee in relation to income which does not form part of the total income under the Act. In the present case,the FAA has recorded the finding of fact that the assessee did not make any claim for exemption of any income from payment of tax. It was on this basis that he held that disallowance u/s.14A of the Act could not be made.In the case before us,admittedly the assessee did not make any claim for exemption. In such a situation section 14A of the Act would have no application. See Cheminvest Limited Versus Commissioner of Income Tax-VI [2015 (9) TMI 238 - DELHI HIGH COURT] - Decided in favour of assessee Addition u/s 36(1)(iii) - proportionate interest on borrowed funds used for acquisition of capital asset - availability of own funds - Held that:- We find that the assessee had sufficient own funds and reserves to purchase new assets, that there is no evidence to prove that existing work in progress had increased because of loans taken by the assessee.The balance sheet of the assessee proves that it had sufficient fund.Therefore,respectfully following the judgment of Reliance Utilities and Power Ltd.(2009 (1) TMI 4 - BOMBAY HIGH COURT) we decide the effective ground of appeal in favour of the assessee
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