TMI Blog2018 (9) TMI 1854X X X X Extracts X X X X X X X X Extracts X X X X ..... ;ble Jurisdictional High Court in the context of Section 36(1)(iii). The Hon'ble High Court, thereafter, applied the same principle while interpreting the provisions of section 14A in the case of CIT Vs. HDFC Bank Ltd. [ 2014 (8) TMI 119 - BOMBAY HIGH COURT] .The Hon'ble High Court observed that where investment is made in tax free securities by the assessee, it would be presumed to have been made from own funds in case they are in excess of investment made. Thus disallowance in respect of interest expenditure made under Rule 8D(2)(ii) is deleted. The impugned order is modified, accordingly, the ground raised in appeal by the assessee is allowed. - ITA No. 638/PUN/2017 Assessment Year : 2008-09 - - - Dated:- 28-9-2018 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case rejected the contentions of the assessee. Now, the assessee is in second appeal before the Tribunal. The ld. AR pointed that the assessee has interest free funds to the tune of ₹ 4,83,83,857/- in the shape of share capital, reserves and surplus. The assessee made investment to the tune of ₹ 4,47,60,486/- out of which dividend yielding investments are only to the tune of ₹ 1,30,83,378/-. During the period relevant to the assessment year under appeal, the increase in dividend yielding tax free investment is ₹ 59,10,000/-. The ld. AR contended that the case of the assessee is squarely covered by the decision of Hon'ble Jurisdictional High Court in the case of CIT Vs. HDFC Bank Ltd., reported as 366 ITR 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct. The Hon'ble High Court, thereafter, applied the same principle while interpreting the provisions of section 14A of the Act in the case of CIT Vs. HDFC Bank Ltd. (supra.). The Hon'ble High Court observed that where investment is made in tax free securities by the assessee, it would be presumed to have been made from own funds in case they are in excess of investment made. 6. Thus, in the light of the facts of the case and the ratio laid down by the Hon'ble Jurisdictional High Court in the case of CIT Vs. HDFC Bank Ltd. (supra.), the disallowance in respect of interest expenditure made under Rule 8D(2)(ii) is deleted. The impugned order is modified, accordingly, the ground raised in appeal by the assessee is allowe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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