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2022 (10) TMI 451 - ITAT DELHIDisallowance of employee’s contribution to Provident Fund and Employee State Insurance Funds - Payment date of filing of return of income - HELD THAT:- This issue is now covered in favour of the assessee even after the amendment as held by ITAT Delhi Benches. ITAT, Delhi in the case of M/s. Express Roadway [2021 (10) TMI 514 - ITAT DELHI] has followed Hon’ble Delhi High Court decision in the case of CIT vs. AIMIL Ltd. [2009 (12) TMI 38 - DELHI HIGH COURT] and SPL Industries [2010 (7) TMI 81 - DELHI HIGH COURT] for the proposition that such additions are not sustainable if the impugned payments are done upto the date of filing of return of income for the concerned assessment year. Following the same, we set aside the orders of the authorities below and delete the addition. Disallowance u/s 14A - Sufficiency of own funds - HELD THAT:- We note that assessee in this case has earned exempt income. All the investments for the same were done in the earlier years. Assessee’s claim was that no borrowed funds were used to make the investment. Authorities below have rejected the same on the ground that assessee should have maintained separate books. However, as held in the case of CIT vs. Reliance Utilities & Power Ltd. [2009 (1) TMI 4 - BOMBAY HIGH COURT] and in CIT vs. HDFC Bank Ltd.[2014 (8) TMI 119 - BOMBAY HIGH COURT] when assessee has sufficient interest free funds no disallowance u/s 14A is required to be done for interest. It is well settled that right of attribution lies with the assessee. In the present case, it is not the case of the Revenue that assessee has not own funds to make those investments on which exempt dividend income has been earned. Rather the case of the Revenue is that assessee should have brought in one to one nexus in the funds and investment. This view is not correct in terms of the decision of Hon’ble Bombay High Court cited above, we set aside the orders of the authorities below and delete the addition in this regard. Decided in favour of assessee.
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