TMI Blog2014 (8) TMI 1007X X X X Extracts X X X X X X X X Extracts X X X X ..... the investment. A further perusal of the balance sheet shows that the assessee was having loan funds as on 31/03/2007 at ₹ 33,29,48,063/- whereas the loan funds as on 31/03/2008 is at ₹ 1,36,00,000/-, which shows that there is a substantial fall in the loan funds which means that there are no fresh borrowings during the year under consideration. See Reliance Utilities and Power Ltd [20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11 pertaining to Assessment Year 2008-09. 2. The sole grievance of the assessee relates to the disallowance of ₹ 88,84,319/- u/s-14A of the Act. 3. Assessee is in the business of financial services and also deals in securities and commodities. While scrutinizing the return of income, the AO noticed that the assessee has both exempt income yielding investment as well business assets in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were available with the assessee and are sufficient to meet its investment. The AO proceeded by computing the disallowance and worked out the disallowance at ₹ 90,04,319/- and after allowing the deduction of ₹ 1,20,000/- a sum of ₹ 88,84,319/- was added to the income of the assessee. The assessee carried the matter before the CIT(A) but without any success. 4. Before us, the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting to ₹ 14,88,38,332/-, the investment is at ₹ 9,71,56,751/-, which clearly shows that the assessee was having sufficient interest free funds to make the investment. A further perusal of the balance sheet shows that the assessee was having loan funds as on 31/03/2007 at ` 33,29,48,063/- whereas the loan funds as on 31/03/2008 is at ₹ 1,36,00,000/-, which shows that there is a s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n above, in our considered view, there is no basis for deeming that the assessee had used the borrowed funds for investments in tax free securities. From the analysis of the balance sheet, the assessee had enough interest free funds at its disposal for making its investment. We therefore set-aside the findings of the CIT(A) and direct the AO to delete the addition of `88,84,319/- made u/s 14A of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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