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2012 (7) TMI 365 - AT - Income TaxDisallowance u/s 14A by invoking Rule-8D - steep increase in the expenses claimed under the head bank interest as compared from previous year concludes that the borrowing of funds has been resorted to by the assessee mainly for purchase of shares - Held that:- As decided in M/s Lala Ram Finance & Investment Versus DCIT [2012 (7) TMI 127 (Tri)]disallowance cannot be made in case where the assessee is having sufficient interest free funds - as the assessee was having sufficient interest free funds to cover the investment made in shares of which income is exempt under section 10 disallowance cannot be warranted. Disallowance of power and fuel, manufacturing and out of selling expenses after comparing the expenses with earlier years - Held that:- Neither AO nor CIT(A) found that the expenditure incurred and claimed by the assessee was not for the purpose of business. The adhoc disallowance was made merely on the basis that some of the vouchers were self-made as merely that the assessee has accounted for the expenditure by self-made vouchers automatically does not prove that the expenditure incurred was for other than business purposes - decided in favour of assessee.
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