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2020 (3) TMI 552 - BOMBAY HIGH COURTDisallowance u/s 14A - HELD THAT:- As perused the decision of this Court in Reliance Utilities and Power Limited [2009 (1) TMI 4 - BOMBAY HIGH COURT] wherein it has been held that if there are funds available with the assessee, both, interest-free and overdraft and / or loans taken then a presumption would arise that investments would be out of the interest-free funds generated or available with the assessee if the interest-free funds were sufficient to meet the investments. In the facts of that case, it was noted that the said presumption was established considering the finding of fact returned by the first appellate authority as affirmed by the Tribunal which is identical in the present case. We also note that the said decision of this Court has been affirmed by the Supreme Court in CIT Vs. Reliance Industries Limited [2019 (1) TMI 757 - SUPREME COURT] . We do not find any good ground to entertain this question for consideration. Loss arising on account of valuation of outstanding liabilities / receivables - HELD THAT:- Tribunal followed the decision of the Supreme Court in CIT Vs. Woodward Governor India Pvt. Ltd. [2009 (4) TMI 4 - SUPREME COURT] declaring that it is now settled proposition of law that the loss arising on account of valuation of outstanding liabilities / receivables cannot be considered as a notional loss. Therefore, Tribunal held that the first appellate authority had rightly set aside the addition made by the assessing officer. Adjustments made in the book profit u/s 115JB following disallowance made u/s 14A on account of foreign exchange fluctuations - tribunal held that since it had upheld the order of the first appellate authority deleting the additions made under Section 14A contention of the Revenue needed to be turned down - HELD THAT:- In the present decision, we have also affirmed the finding of the Tribunal affirming the deletion of disallowance made under Section 14A of the Act. Since disallowance under the substantive provision have been interfered with, question of consequential adjustments in book profit under Section 115JB of the Act does not arise. Bogus purchases u/s 69C - HELD THAT:- We find that according to the Tribunal the assessing officer had merely relied upon information received from the Sales Tax Department, Government of Maharashtra without carrying out any independent enquiry. Tribunal had recorded a finding that assessing officer had failed to show that the purchased materials were bogus and held that there was no justification to doubt genuineness of the purchases made by the respondent - assessee. We are in agreement with the views expressed by the Tribunal. Merely on suspicion based on information received from another authority, the assessing officer ought not to have made the additions without carrying out independent enquiry and without affording due opportunity to the respondent - assessee to controvert the statements made by the sellers before the other authority. Accordingly, we do not find any good ground to entertain this question for consideration as well.
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