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2018 (1) TMI 143 - BOMBAY HIGH COURTDisallowance under Section 80M - establishment of nexus between the investments made during the year and the borrowed funds - Penalty proceedings initiated under Section 271(1)(c)- Held that:- The issue is clearly covered in view of the decision of this Court in the Commissioner of Income Tax vs. Reliance Utilities and Powers Ltd. (2009 (1) TMI 4 - BOMBAY HIGH COURT ). We have perused the said judgment. The Division Bench held that when the funds available were both interest-free and overdraft and/or loan taken, then a presumption would arise that the investments made would be out of interest-free funds generated or available with the company, provided the interest-free funds were sufficient to meet the investments. In the case at hand, Mr.Suresh Kumar fairly conceded that the said decision holds the field as on date. In view of the above and considering the issue at hand, we are of the view that the respondent assessee is held entitled to benefit of the aforesaid presumption and accordingly, the questions proposed do not give rise to any substantial question of law. The impugned order does not call for interference and accordingly the appeal need not be entertained.
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