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2013 (5) TMI 611 - ITAT AHMEDABADDisallowance u/s 14A r.w.r. 8D - CIT(A) deleted the addition - Held that:- The assessee was having total interest free income of 1,10,59,410/- whereas the investment in shares was of Rs. 1,06,00,670/-. Thus the interest free funds available with the assessee were in excess of the investment made in shares from which dividend income which is exempt in nature were received. CIT(A)found after perusal of the assessment orders of earlier years that there was no disallowance of interest by the assessing officer in the earlier years on the basis of which an inference could be drawn that the interest bearing funds of all the earlier years have been utilized for making investment in shares which has generated exempt income and thereby raised the issue of disallowance u/s 14A. In the light of these undisputed facts of CIT(A) had held that this was not a fit case in which provisions of section 14A were attracted placing reliance on the decision of CIT vs. M/s Lubi Submersibles Ltd [2011 (7) TMI 519 - Gujarat High Court] wherein held that there was a sufficient surplus fund available with the assessee to invest and there was no nexus that could be established with the expenditure incurred by the assessee for earning the dividend income. In favour of assessee.
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