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2017 (7) TMI 1075 - AT - Income TaxDisallowance u/s 14A - sufficiency of own funds - Held that:- We find that the assessee had sufficient own funds during the year under consideration for making the investments. The assessee had own fund of ₹ 47 crores(app.),whereas investments, resulting in exempt income, were of ₹ 4 crores(app.). The honorable jurisdictional High Court in the case of HDFC Bank Ltd (2016 (3) TMI 755 - BOMBAY HIGH COURT) has held that if an assessee possessed sufficient own fund the presumption was that investment was made from own fund and not from borrowed funds. Similar view was taken by the Hon’ble Court in the case of Reliance Utilities & Power Ltd.(2009 (1) TMI 4 - BOMBAY HIGH COURT ). Besides, the assessee had disallowed ₹ 3.43 lakhs on its own under the head administrative expenses and the AO had not given any reason for rejecting the stand taken by the assessee. So, in our opinion, there was no need to make any further disallowance. - Decided in favour of assessee.
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