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2012 (10) TMI 1061 - AT - Income TaxAddition u/s 14A - Held that:- Hon’ble Bombay High Court in the case of CIT vs. Reliance Utility (2009 (1) TMI 4 - BOMBAY HIGH COURT) has held that if the interest free funds are available to an assessee sufficient to meet with investments and at the same time the assessee had raised a loan it can be presumed that the investments were from the interest free funds available. In the present case before us considering the finding of co-ordinate Bench and of the CIT (A). it can be presumed that assessee was having sufficient funds for investments. In view of these facts and respectfully following the decision of High Court we are of the view that in the present case no interference is called for in the order of CIT (A) with respect to the disallowance pertaining to disallowance of interest amounting to ₹ 15,50,415/-. With respect to the disallowance of ₹ 1,39,125/-on account of administrative expenses, the factual position is that the assessee has stated it has not incurred any administrative expenditure A.O. has also not given a finding to the effect that the assessee has incurred expenditure towards exempt income.
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