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2017 (6) TMI 228 - ITAT MUMBAIDisallowance of expenditure u/s 14A read with Rule 8D - Held that:- No disallowance can be made u/s.14A in case there is no exempt income. As in the present case it is not in dispute that assessee was not in receipt of any exempt income during the year under consideration, accordingly on this proposition also, no disallowance is warranted u/s.14A r.w.r. 8D - Decided in favour of assessee Disallowance made u/s.36(1)(iii) - difference between the interest expenditure and compensation so received from Urban Transport Infrastructure Pvt. Ltd was disallowed - CIT(A) has deleted the disallowance by recording a finding of fact that amount was borrowed for the purpose of business and utilized for the purpose of business only - expression "for the purpose of business" interpretation - Held that:- All the following three conditions for allowing deduction u/s.36 (1)(iii) was satisfied. (i) The money, i.e., capital has been borrowed by the assessee. (ii) It must has been borrowed for the purpose of business. (iii) The assessee has paid interest on the borrowed amount i.e., he has shown the same as an item of expenditure. Further in the case of CIT v, Dalmia Cement (B) Ltd.(2001 (9) TMI 48 - DELHI High Court ) it has been held that, if all the requisite conditions for allowance of interest are fulfilled, it is not possible and open to the Revenue to make a part disallowance, unless there is a positive finding recorded that a part of the amount borrowed was not used for the purposes of the business. No infirmity in the order of CIT(A) for deleting the disallowance of interest in respect of funds borrowed for the purpose of business.- Decided in favour of assessee
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